Neutral


 

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Neutral

1. Said of a technological change or technological difference if it is not biased in favor of using more or less of one factor than another. This can be defined in several different ways that are not normally equivalent: Hicks-neutral, Harrod-neutral, and Solow-neutral. 2. Said of economic growth if it expands actual or potential output of all goods at the same rate, not being biased in favor of one over another. In the Heckscher-Ohlin Model neutral growth will occur all factor endowments grow at the same rate or if there is Hicks Neutral technological progress at the same rate in all industries. 3. Said of a trade regime if the structure of protection favors neither exportables nor importables. See bias.

Neutral

Describing an opinion that is neither bearish not bullish. Neutral option strategies are generally designed to perform best if there is little or no net change in the price of the underlying stock or index. See also Bearish and Bullish.



Neutral

Similar Matches

Neutral period

Neutral period

In the Euromarket, a period over which Eurodollars are sold is said to be neutral if it does not start or end on either a Friday or the day before a holiday.


Tax neutrality

Tax neutrality

Characteristic that taxes do not interfere with the natural flow of capital toward its most productive use.


Neutral stock

Neutral stock

A stock with a beta of 1.0.


Harrod neutral

Harrod neutral

A particular specification of technological change or technological difference that is labor augmenting.


Market Neutral

Market Neutral

In the context of hedge funds, a style of management that has long and short equity exposure with nearly exposure on average to fluctuations in the market. However, the on average qualification is important. The risk of the longs and the shorts could fluctuate through time leading to negative returns when the market falls sharply.


Further Suggestions

delta neutral
Risk neutral
Neutral hedge
Delta neutral
Hicks-neutral
Solow neutral


 
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