absorb
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Absorb
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.
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.
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absorb
To offset sell orders or a new security offering with buy orders.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.