Basket

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Basket

Applies to derivative products. Group of stocks that is formed with the intention of either being bought or sold all at once, usually to perform index arbitrage or a hedging program.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Basket

1. A group of securities often, but not always, derivatives, bought and sold as a single unit. Institutional investors often purchase baskets in order to pay only a single commission on an exceptionally large transaction. A basket is also useful in an index arbitrage transaction.

2. See: Currency basket.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

basket

A preassembled group of securities. Baskets allow individual investors to acquire a group of securities with a single trade while paying one commission.
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.

Basket.

A basket is a group of securities that have been put together for a specific investment purpose and are traded as a unit.

Authorized ETF participants accumulate baskets that include all of the securities tracked by a specific index. The baskets then become creation units for an ETF that tracks that index.

Basket also refers to a group of 15 or more securities with a combined value of $1 million that institutional investors and arbitrageurs assemble to use in program trading. The program trading is driven by sophisticated computer software that may automatically trigger trading when prices, or spreads between prices, hit predetermined levels.

Since baskets represent large values, basket trading can cause abrupt price changes in a stock or group of stocks included in a basket and may even have a dramatic effect on the overall market.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
The actual subject matter is barely relevant: cities, hospitals, schools--all of them have their own books suggesting that things are going to hell in a handbasket.
Where's the world going except to hell in a handbasket (whatever that means)?
I-rak is going to hell in a handbasket, and it's gonna git worse before it gits better.
For four centuries, adults have feared that the younger generation is going to hell in a handbasket.
While it might seem that the auto industry is going to hell in a handbasket, as the Gershwins put it, "it ain't necessarily so." Some companies get it.
Clad in a fur coat, Celia Cooney made off with the aforesaid money through a series of grocery store robberies that were reported by the likes of Ring Lardner and Walter Lippman, decried as the evidence that American youth were are going to hell in a handbasket, and admired as a working class hero.
Valerie Brown, a freelance journalist who has written about global warming, said she worries that as they find out more about the issue, "people will just get more anxious and cocoon even more while the world is going to hell in a handbasket."
And when everything goes to hell in a handbasket, why shouldn't I shrug my shoulders and intone the modern holy trinity: "Who could have imagined this would happen?" "It's not my fault," and "We have no back-up plan."
Modernizing the British National Health Care Service is not just a matter of tripping in with the latest management fad in a handbasket. Peck (health services management, U.
THIS WEEK produced powerful new evidence for those journalistic Jerimiahs who insist that Britain is heading for Hell in a state-subsidised handbasket.
"We are not going to hell in a handbasket," quips John Burns, whose Irvine, Calif.-based real estate consulting firm conducts market research for home builders.
In this context, Doll criticized pundits who have said the three-tier system is "antiquated" and that the boundary between the tiers might soon "evaporate." Doll definitely took issue with those who say the threetier "is going to hell in a handbasket," saying "nothing is further from the truth."