Market economy and Neutral: Difference between pages

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imported>Doug Williamson
(Create the page: Source; https://financial-dictionary.thefreedictionary.com/Market-based+economy.)
 
imported>Doug Williamson
(Create page. Sources: Linked pages.)
 
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''Economics.''
1.  ''Impact.''


A social and economic system in which prices are fixed by the law of supply and demand rather than by government or other body.  
An action or policy having no effect on a measure under review, having no net effect on it, or intended to have no net effect on it.


For example, ''carbon-neutral'' or ''neutral interest rate''.


==See also==
 
* [[Closed economy]]
2.  ''Risk management - hedging.''
* [[Economics]]
 
* [[Open economy]]
A position that is considered to be hedged against changes in a market rate or price, or other market-related variable.
 
For example, ''delta neutral'' or ''vega neutral''.
 
 
3.  ''Financial reporting.''
 
Financial amounts reported on an adjusted basis to remove distortions and aid comparability.
 
For example, ''FX-neutral'' financial amounts.
 
 
4.  ''Valuation or policy basis.''
 
A basis of valuation or decision making that is independent of the variable mentioned.
 
For example, ''risk neutral valuation'' methods.
 
 
== See also ==
* [[Carbon-neutral]]
* [[Delta neutral]]
* [[Financial reporting]]
* [[Float neutral]]
* [[FX-neutral]]
* [[Hedging]]
* [[Impact]]
* [[Input]]
* [[Net zero]]
* [[Neutral interest rate]]
* [[Risk management]]
* [[Risk neutral valuation]]
* [[Variable]]
* [[Vega neutral]]


[[Category:The_business_context]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Revision as of 21:39, 24 March 2023

1. Impact.

An action or policy having no effect on a measure under review, having no net effect on it, or intended to have no net effect on it.

For example, carbon-neutral or neutral interest rate.


2. Risk management - hedging.

A position that is considered to be hedged against changes in a market rate or price, or other market-related variable.

For example, delta neutral or vega neutral.


3. Financial reporting.

Financial amounts reported on an adjusted basis to remove distortions and aid comparability.

For example, FX-neutral financial amounts.


4. Valuation or policy basis.

A basis of valuation or decision making that is independent of the variable mentioned.

For example, risk neutral valuation methods.


See also