Risk-Free Transactions financial definition of Risk-Free Transactions. Risk-Free Transactions finance term by the Free Online Dictionary.

Riskless transaction

A transaction that is guaranteed a profit, such as the arbitrage of a temporary differential between commodity prices in two different markets. The evaluation of whether dealer markups and markdowns in OTC transactions are reasonable. According to NASD, markups or markdowns should not exceed 5%.

Riskless Transaction

A transaction where a gain is guaranteed by the structure of the transaction. To give a very simple example, one may find a client who wishes to purchase a security at $10 per share when one knows that the current price is $9.50 per share. One then buys the security at the current price and instantly re-sells to the client for a 50 cent per share guaranteed profit. This is also called a simultaneous transaction. See also: Arbitrage, Risk-free return.

riskless transaction

A dealer transaction in which the dealer makes a purchase or sale to offset a customer order. Thus, if a customer wishes to purchase 500 shares of Rushville Exterminators, Inc., at $80 per share, the dealer may purchase the 500 shares from another source at $79.25 and resell the stock to the customer at a markup of 75¢. The dealer has entered into a riskless transaction because the purchase will be offset by an existing customer order. The markup on riskless transactions is regulated by the National Association of Securities Dealers. Also called simultaneous transaction. See also five-percent rule.

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Simultaneous Transaction			Risk Neutral risk of loss Risk Premium Risk Premium Approach Risk Profile Risk Ratio Risk Reversal Risk seeker Risk Taker Risk Tolerance Risk Transfer risk versus reward Risk-Adjusted Discount Rate Risk-Adjusted Performance Risk-adjusted profitability Risk-Adjusted Return Risk-Averse Risk-based capital ratio risk-based capital requirement Risk-Free Risk-Free Asset Risk-Free Interest Rate risk-free rate Risk-Free Rate of Return Risk-Free Return Risk-Free Transactions Risk-Loving Risk-Neutral Risk-Prone Risk-Return Trade-Off Risk-Return Tradeoff Risk-Reward Ratio Risk-Weighted Assets Riskless Arbitrage Riskless Investment Riskless or Risk-Free Asset Riskless Rate Riskless rate of return Riskless Transaction Risks and Opportunities Risky Asset Risky Operation Risparmiare Risque d'insolvabilite Risque de change Risque de penurie Risque de ralentissement Risque exterieur Risque-Pays Risultato finale Ritenuta alla fonte			Risk-based Testing risk-based work plan Risk-benefit analysis Risk-Capital Research and Technology Risk-factor Risk-factor Risk-factor risk-free risk-free Risk-Free Arbitrage Risk-free asset Risk-Free Assets Risk-free interest rate Risk-Free Interest Rates Risk-Free Investment Risk-Free Investments Risk-Free Profit Risk-Free Profits Risk-free rate Risk-free rate Risk-Free Rate of Return Risk-Free Rates Risk-Free Rates of Return Risk-free return Risk-Free Returns Risk-Free Securities Risk-Free Security Risk-Free Transaction Risk-Free Transactions Risk-Informed Risk-Informed Inservice Inspection Risk-Informed Licensing Panel Risk-Informed Regulation Implementation Plan Risk-Informed, Performance-Based Regulation Risk-loving Risk-Need-Responsivity Risk-neutral Risk-Neutral Valuation Relationship Risk-prone Risk-Reducing Salpingo Oophorectomy Risk-Reduction Mastectomy Risk-Related Medical History Risk-return spectrum Risk-return trade-off Risk-Return Trade-Offs Risk-return tradeoff Risk-Return Tradeoffs Risk-Reward Basis risk-reward ratio Risk-Reward Ratios Risk-Screening Environmental Indicators Risk-Seeking risk-sharing hypothesis

Riskless Transaction (redirected from Risk-Free Transactions)

Riskless Transaction
(redirected from Risk-Free Transactions)