See Also: Tight money or dear money(finance)
collar(medicine)
collar(2)(dictionary)
dog collar(dictionary)
collar(1)(dictionary)
Collar(recipes)
Collar(money)
Collar(finance)
Equity collar(money)
Gray Collar(money)

Collar (money)


Definition: [crh] Refers to the ceiling and floor of the price fluctuation of an underlying asset. A collar is usually set up with optioDefinition: ns, swaps, or by other agreements. In corporate finance, the collar strategy of buying puts and selling calls is often used to mitigate the risk of a concentrated positDefinition: ion in (sometimes) restricted stock. When the restricted owner can't sell the stock, but needs to diversify the risk, a collar transaction is one of the few tools available. Many corporate exeDefinition: cutives who receive chunks of their compensation in restricted stock need to employ this strategy to mitigate the diversification risk in their overall portfolio.