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Riskless principle |
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Riskless principleA term used by the London Stock Exchange to denote either: that a trade was reported as a riskless principle transaction between two non-members, where the two transactions are executed at different prices or on different terms (requiring two separate trade reports)orthat a market maker is reporting a riskless principle transaction where the two transactions are executed at different prices.Similar MatchesStand alone principleStand alone principleInvestment approach that advocates a firm should accept or reject a project by comparing it with securities in the same risk class. Worked principle tradeWorked principle tradeA term used by the London Stock Exchange to denote that a reported trade was from a worked principle agreement for a single security. Origin principleOrigin principleThe principle in international taxation that value added taxes be kept only by the country where production takes place. Under the origin principle, value added taxes are not collected on imports and not rebated on exports. Contrasts with the destination principle. Systematic risk principleSystematic risk principleOnly the systematic portion of risk matters in large, well-diversified portfolios. Thus, expected returns must be related only to systematic risks. Insurance principleInsurance principleThe law of averages. The average outcome for many independent trials of an experiment will approach the expected value of the experiment. Further SuggestionsPrecautionary principleLoan Preference Principle Deming's 14 Principles Generally Accepted Accounting Principles (GAAP) mortgage agreement in principle Destination principle Agreement in principle Principle of diversification |
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