Definition
Portfolio insurance
Refers to a strategy of hedging a stock portfolio in order to reduce risk exposure by selling stock index futures in order to counter a decline in a stock portfolio.
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Constant Proportion Portfolio Insurance - Constant Proportion Portfolio Insurance is also known as CPPI and is a type of derivative security, which offers exposure to an investment, while retaining less risk and guaranteeing capital investment.
Portfolio Insurance
A trading strategy that uses stock index futures and/or stock index options to protect stock portfolios against market declines.
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Portfolio Insurance
An option hedging strategy to protect long cash market positions.
Portfolio insurance
A method of hedging, or protecting, the value of a stock portfolio by selling stock-index futures contracts when the stock market declines. The practice was a major contributor to the October 1987 stock market crash.
Portfolio Insurance
1. A method of hedging a portfolio of stocks against the market risk by short selling stock index futures.
2. Brokerage insurance such as the Securities Investor Protection Corporation (SIPC).
Portfolio Insurance
Finance By Example (Archives): Yes, You Can Buy Insurance Against Plunges In Stock Prices
Preemptive Right The right of a shareholder to purchase newly issued shares of the company before the general public.
Portfolio Insurance -The use of futures or options to hedge a portfolio of stocks.
Position - A Position is established as long as futures contracts are longed or shorted in one's account.
Portfolio insurance
Method that consists in regularly and automatically adjusting the proportion of risky assets (i.e. those exposed to a market index) and non-risky assets (cash) in order to provide total or partial protection for the principal ...
Portfolio Insurance: A trading strategy which attempts to alter the nature of price changes in a portfolio to substantially reduce the likelihood of returns below some predetermined level for an established period of time.
Portfolio insurance is not usually a real insurance. In general, you will not be paying a second party more money to make sure that your portfolio performs to a particular standard.
Portfolio insurance and program trading were intended to help investors take advantage of short-term market fluctuations. Unfortunately, these two systems, along with a lack of investor confidence, drove the Dow Jones down 508 points.
Portfolio insurance
A strategy using a leveraged portfolio in the underlying stock to create a synthetic put option. The strategy's goal is to ensure that the value of the portfolio does not fall below a certain level.
A portfolio insurance technique that creates an option-like return by increasing or reducing the position in the underlying security or futures, options, or forward contract.
Constant proportion portfolio insurance
Related answers:
What is risk and why carry out risk assessments? Read answer...
Filter Point: The time at which a portfolio insurance program makes an adjusting trade.
Fire: (verb) In expert system programming, ordinarily used to describe the "triggering" or "activation" of a rule.
portfolio insurance A strategy of hedging a stock portfolio against market risk by selling stock... portfolio management An individual who controls the assets of a mutual fund. The portfolio manager...
Program trading is the use of computers to engage in arbitrage and portfolio insurance strategies. Through the 1970s and early 1980s, computers were becoming more important on Wall Street.
* During the crash, a steadily falling market showed that institutional investors' heavy dependence on program trading and portfolio insurance actually did more harm than good.
Either strategy rewarded the experienced market operator significantly as the cascade picked up steam this past week and looks set to have enough momentum building from forced selling triggered by margin liquidations, portfolio insurance, ...
Portfolio insurance
Portfolio margin
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Profitability index
Prosperity consciousness
Public float
Purchase price adjustment ...
Filter Point
The time at which a portfolio insurance program makes an adjusting trade.
Filter
A device or program that separates data, signal or information in accordance with specified criteria.
An asset allocation strategy in which the asset mix is mechanistically shifted in response to changing market conditions, as in a portfolio insurance strategy, for example.
Dynamic hedging ...
Credit linked note (CLN)
Synthetic Collateralised Debt Obligation (CDO)
Constant Proportion Debt Obligation (CPDO)
Synthetic Constant Proportion Portfolio Insurance (Synthetic CPPI) ...
Dynamic asset allocation
An asset allocation strategy in which the asset mix is quantitatively shifted in response to -changing market conditions, as in a portfolio insurance strategy, for example.
began to embark on large-scale buying or selling campaigns or "programs" to invest in a manner which replicated a target stock index, the term now also commonly includes computer aided stock market buying or selling programs, portfolio insurance, ...
 See also: Portfolio, Stock, Trading, Market, Investment
  
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