Negative Obligation

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Dictionary Says

Definition of 'Negative Obligation'

An obligation of NYSE specialists to remain on the sidelines and refrain from acting as principal when there is sufficient market demand and supply to efficiently match orders.
Investopedia Says

Investopedia explains 'Negative Obligation'

The negative obligation ensures that specialists are not getting involved in the market on their own behalf when the market is able to "make itself" and sufficiently match buyers with sellers. This obligation on the specialists provides the public with the opportunity to transact with each other without specialist intervention.
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'Negative Obligation'

  • Can an option have a negative strike price?

    http://www.investopedia.com/ask/answers/06/negativestrikeprice.asp
    ... to exchange traded options, an option can't have a negative strike price . Remember
    that an option gives the holder the right, but not the obligation, to buy ...

  • Financial Statements: Pension Plans | Investopedia

    http://www.investopedia.com/university/financialstatements/financialstatements9.asp
    ... of five years to earn interest before 2010, the present value of the obligation
    as of ... to the pension plan and they could have a positive or negative impact on ...

  • Layoff Protection Plans: Good Deal Or Gimmick?

    http://www.investopedia.com/articles/pf/09/layoff-protection-plans.asp
    ... dealer, whose appraisal is factored into the valuation formula, and the consumer
    avoids further financial obligation or negative impact to his or her credit. ...

  • Credit Default Swaps: An Introduction

    http://www.investopedia.com/articles/optioninvestor/08/cds.asp
    ... an insurance premium, and is obligated to pay only if a negative credit event ... bond
    involved in the transaction is called the "reference obligation." A contract ...

  • The Alphabet Soup Of Credit Derivative Indexes

    http://www.investopedia.com/articles/optioninvestor/07/credit-der-index.asp
    ... due to the negative credit event. There is also the option of physical, rather than
    cash, trade settlement in which the underlying bond or reference obligation ...

  • Cash Flow From Investing

    http://www.investopedia.com/articles/financial-theory/11/cash-flow-from-investing.asp
    ... While "negative" cash flow doesn't sound good, it isn't always bad ... events as sale
    of fixed assets, securities, retirement of capital obligation or litigation ...

  • Alternative Assets For Average Investors

    http://www.investopedia.com/articles/financial-theory/08/alternative-assets.asp
    ... on this futures contract would confer the right (not the obligation) to exercise ...
    between 1 (perfect positive correlation) and -1 (perfect negative correlation ...

  • The Forex Greeks And Strategies

    http://www.investopedia.com/articles/forex/11/forex-options-greeks.asp
    ... Traditional options give the buyer the right, but not the obligation, to purchase
    an ... words, option delta will always be positive for calls and negative for puts ...

  • Own Apple For Less Than Market Price

    http://stocks.investopedia.com/stock-analysis/2010/Own-Apple-For-Less-Than-Market-Price-AAPL-AMZN-GOOG-DELL-MSFT0830.aspx
    ... Against a negative real return for the S&P 500 over the last decade, shares in ... By
    selling a put option, an investor is making an obligation to buy shares of ...

  • Own Apple For Less Than Market Price

    http://stocks.investopedia.com/stock-analysis/2010/own-apple-for-less-than-market-price-aapl-amzn-goog-dell-msft0830.aspx
    ... Against a negative real return for the S&P 500 over the last decade, shares in ... By
    selling a put option, an investor is making an obligation to buy shares of ...

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