Vendor financing

Definition:

The lending of money by a company to its customers so that the customers can in turn purchase products from the company. The company is basically increasing its sales by basically buying its own products.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

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Currency hedge

Applies mainly to international equities. Hedging technique to guard against foreign exchange fluctuations (i.e., short Euro l00 mm when holding a long position of Euro l00 mm in stocks).

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