Definition of Cover

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TeachMeFinance.com - explain Cover




historic definition...

Cover -- A term used on the London Stock Exchange, which means the security deposited by a borrower with the lender or by a speculator with a broker to protect the lender or broker against loss. Besides the cover speculators often have to deposit money to protect the lender or broker in case the value of the security deposited as cover falls rapidly. This money is called margin.



About the author

Mark McCracken

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".


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