Holding Company Depository Receipt - HOLDR

Filed Under » , ,
Dictionary Says

Definition of 'Holding Company Depository Receipt - HOLDR'

A financial product created by Merrill Lynch and traded daily on the American Stock Exchange that allows investors to buy and sell a basket of stocks in a particular sector, industry or other classification in a single transaction.
Investopedia Says

Investopedia explains 'Holding Company Depository Receipt - HOLDR'

There is a wide range of HOLDRs, covering various segments of the market such as biotech, internet and Europe 2001. Each HOLDR represents individual ownership in the stocks underlying the HOLDR. The value of the HOLDR fluctuates with the change in value of the underlying stocks.

The benefit of this instrument is that it enables an investor to gain exposure to a segment of the market and diversify within that sector. To gain the same level of diversification without this vehicle, the investor would need to purchase each company individually, thus increasing the amount of commissions.

Articles Of Interest

  1.

    An Introduction To Depositary Receipts

    Learn about a security that allows you to invest in a foreign company through your local exchange.

  2. Mutual Fund Or ETF: Which Is Right For You?

    Learn the differences between these investment products and how to take full advantage.

  3. American Depositary Receipt Basics

    Thanks to American depositary receipts, investors now have a world of investing opportunities to choose from.

  4. Tips To Get Into A Broker Training Program

    Becoming a registered representative isn't easy. Learn how to succeed at the first step.

  5. Internships: Find The Best One For You

    It only takes a little legwork to land a prestigious career while you're still in college.

  6. Should You Add A Securities License To Your Qualifications?

    Clients love planners who sell securities, but a securities license takes a lot of work. Learn if the stress and study are worth it.

  7. Careers In The Derivatives Market

    The growing interest in and complexity of these securities means opportunities for job seekers.

  8. 10 Great Investment Books For The Holidays

    Looking for the perfect gift? Here's a list of informative reads you'll want to share with others this season.

  9. 5 Scariest Scenarios For Today's Retail Investors

    Here are five current and potential events that could shape the market in the near future.

  10. Stock Market Simulators: Play Your Way To Profits

    Online stock simulators make learning about stocks as fun and easy as playing a game.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Xenocurrency

    A currency that trades in markets outside of its domestic borders.

  2. Wanton Disregard

    A standard of severe negligence. Wanton disregard is a very serious accusation that indicates that a person behaved extremely recklessly.

  3. Ultra ETF

    A class of exchange-traded funds (ETF) that employs leverage in an effort to achieve double the return of a set benchmark.

  4. Toehold Purchase

    A purchase of less than 5% of a target company's outstanding stockmade by an acquiring company. A toehold purchase of just under 5%, while not a significant stake in a firm, allows the shareholders a "toe-holds" grip on the company and its decision making.

  5. Samurai Bond

    A yen-denominated bond issued in Tokyo by a non-Japanese company and subject to Japanese regulations.

  6. Chartalism

    A non-mainstream theory of money that emphasizes the impact of government policies and activities on the value of money.
Trading Center