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1. To trade a security without driving the market price in any direction. That is, a security is said to absorb transactions when they do not cause the price to go up or down.

2. To refrain from passing on a cost to customers. For example, a business absorbs a cost when it must pay an additional $1 per unit in taxes but does not raise a unit's retail price by any amount.


To offset sell orders or a new security offering with buy orders.
References in periodicals archive ?
The absorbing layer of foam absorbs the acoustic energy, and the barrier layer prevents any remaining noise from passing through the sheet metal cover.
The article comprises an absorbing body layer with a means for long-term storage of body fluids or superabsorbing materials.
Atmospheric and oceanic scientists have spent the past decade searching the Northern Hemisphere for a hiding place that calculations suggest is absorbing more than a billion tons of carbon dioxide out of the air each year.