Business, Legal & Accounting Glossary
Certificate of deposit with an interest rate that increases when the underlying market index decreases, used for speculation or hedging. For investors looking for the safety associated with certificate of deposits but want the market exposure – many will use a Bear CD. If an investor has been putting his or her money into investments strongly correlated to underlying market index, he or she may want to offset losses from market investments by putting additional cash into a Bear CD.
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This glossary post was last updated: 20th November, 2021 | 0 Views.