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Synthetic
(redirected from synthetic reaction)

   Also found in: Dictionary/thesaurus, Medical, Legal, Encyclopedia, Wikipedia, Hutchinson 0.01 sec.
Synthetic
An investment vehicle or investment instrument that is created artificially by using two or more other instruments in such a way as to imitate an existing vehicle or instrument. For example, one may take positions on two different options with the same underlying asset to create a synthetic that acts as a stock in the underlying asset. Synthetics are taxed like the investment instruments they are imitating.


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