Definition of Carry-over

a
b
c
d
e
f
g
h
i
j
k
l
m
n
o
p
q
r
s
t
u
v
w
y
z

search


TeachMeFinance.com - explain Carry-over




historic definition...

Carry-over -- On the London Stock Exchange carry-over is a term used to signify the aggregate of the contracts in one or in all stocks continued or carried over to the next settlement. The carry-over as a whole designates the collective operation by which the speculative position open for the rise or fall is continued from one settlement to the next. When the position open is for the rise speculators have to borrow money and pay a contango rate to money lenders ; when the position open is for the fall speculators have to borrow stock from the holders and pay them a backwardation. It is, however, a comparatively rare occurrence that a stock is so much oversold by speculators that a backwardation can be exacted from them.



About the author

Mark McCracken

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".


Copyright © 2007 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.