Burst Basket

DEFINITION of 'Burst Basket'

A burst basket refers to a particular type of stock transaction that involves the sale or purchase of a "basket of stocks". A basket is basically an entire portfolio of stocks (five to 50 stocks) from different sectors that are purchased in the aggregate by an equity specialist.

BREAKING DOWN 'Burst Basket'

This term is usually used in reference to a burst basket execution used in trading programs. The floor specialists would trade the component stocks in order to buy or sell the specific basket of stocks.

RELATED TERMS
  1. Basket Of Goods

    A relatively fixed set of consumer products and services valued ...
  2. Income Basket

    Categories for which various sources of income are allocated ...
  3. Basket

    A single unit of at least 15 stocks that are used in program ...
  4. Market Basket

    A subset of products or securities that is designed to mimic ...
  5. Basket Trade

    An order to buy or sell a group of securities simultaneously. ...
  6. Currency Basket

    A selected group of currencies in which the weighted average ...
Related Articles
  1. Retirement

    Electronic Trading: The Role of a Specialist

    The NYSE facilitates trading through a human being who is known as the specialist. Each stock listed on the NYSE is allocated to a specialist and all the buying and selling of a stock occurs ...
  2. Forex

    The Consumer Price Index

    Find out how this economic measure can help you make key financial decisions.
  3. Economics

    Purchasing Power Parity (PPP)

    Purchasing Power Parity (PPP) compares different countries' currencies through a market "basket of goods" approach. Two currencies are in PPP when a market basket of goods (taking into account ...
  4. Budgeting

    Putting All Your Eggs In One Basket

    Anyone who spends more than they earn will be facing bankruptcy in no time, but there are some other ways to go flat broke.
  5. Professionals

    The Role Of The Specialist / Designated Market Maker (DMM)

    The specialist is an independent exchange member who has been assigned a stock or group of stocks for which they are the designated market maker (DMM). They are responsible for: Maintaining a ...
  6. Mutual Funds & ETFs

    An Introduction To Exchange-Traded Grantor Trusts

    These funds offer a very hands-off experience for the low-involvement investor.
  7. Investing Basics

    Retirement Portfolios: Adding Crucial Alternatives

    Diversifying assets in a retirement portfolio means not putting all of your eggs into one basket.
  8. Economics

    What Does Price Level Mean?

    Price level is the average of all current prices for goods and services in an economy.
  9. Investing Basics

    What is an Index?

    An index is a statistical means of calculating a change in an economy or market.
  10. Professionals

    E-Marketing Specialist: Career Path & Qualifications

    Learn more about the duties and responsibilities performed by eMarketing specialists and common career paths this profession takes.
RELATED FAQS
  1. How do I use a "basket" option?

    A basket option is an option with an underlying asset "basket" of securities, currencies or commodities. Basket options are ... Read Answer >>
  2. How is the basket of goods selected for the Consumer Price Index?

    Read about alterations in the market basket for the consumer price index, a measure of approximate consumer price changes ... Read Answer >>
  3. Who employs the specialists at New York Stock Exchange (NYSE)? Do they work for themselves, ...

    Before we address this question, let's review what specialists do. Specialists are people on the trading floor of an exchange, ... Read Answer >>
  4. A _______ is a person on the trading floor of certain exchanges who holds an inventory ...

    The correct answer is d. A good example of an exchange using the specialist system is the NYSE. Each stock listed on the ... Read Answer >>
  5. What's the difference between a Nasdaq market maker and a NYSE specialist?

    What's the main difference between a specialist and a market maker? Not much. Both the New York Stock Exchange (NYSE) specialist ... Read Answer >>
  6. When a floor broker asks a specialist, “How’s PDQ?” ...

    The correct answer is d. When the specialist gave the floor broker the quote of “59.20 to 35; 6 by 11,” the quote meant that ... Read Answer >>
Hot Definitions
  1. Goodwill

    An account that can be found in the assets portion of a company's balance sheet. Goodwill can often arise when one company ...
  2. Return On Invested Capital - ROIC

    A calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. ...
  3. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  4. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  5. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center