Wednesday, December 29, 2010

Basket

In fund-speak a basket usually refers to a collection or grouping of securities. Examples of its use are 'a basket of securities designed to replicate the index' or 'a basket of commodities designed to act as an inflation hedge' or 'index arbitrage by selling futures and buying a basket of securities representative of the index' etc. Sometimes people refer to the securities held within an ETF as a basket.

Synonyms: Portfolio, Group, Holdings

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