An offer to buy or sell a security at a floating price based on an index. That is, the price is determined by the value of some index at the time the sale takes place; it is not a set amount.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
An offer either to buy or to sell a security at a price based on an index. For example, in 1985 Exxon Pipeline Company offered to purchase up to $100 million principal amount of two of its bond issues at a price that would provide a yield to maturity of 170 points less than the Bond Buyer's 40-Bond Index.
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.