Tying

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Dictionary Says

Definition of 'Tying'

An often illegal arrangement where, in order to buy one product, the consumer must purchase another product that exists in a separate market. Tying falls under the wider legal umbrella of illegal competition that was originally censured by the Sherman Antitrust Act and refined in later acts. The distinction between tying (illegal) and bundling (legal within limits) is an important one for businesses to understand.
Investopedia Says

Investopedia explains 'Tying'

For example, an automaker bundles the tires that are sold with the manufactured automobile. However, the same automaker would likely be guilty of tying if, to purchase the car, you were required to buy a specific brand of toolbox. Other makers of toolboxes would quickly point out that a separate and robust market for toolboxes already exists. The reason that tire makers can’t make this argument is that tires – no matter the brand – are necessary to marketing the car, and without cars, there is no market for tires. However, it is court decisions, more than any black and white lines, that form competition laws. Even this latter example may not survive the somewhat unpredictable nature of legal scrutiny.
Search results for

'Tying'

  • How Does Your Margin Grow?

    http://www.investopedia.com/articles/optioninvestor/04/120904.asp
    ... maximum risk. As we can see from this example we are only tying up $444
    in initial margin to collect the $906.26 in premium. The ...

  • Top 4 Affordable Halloween Decor Ideas - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1011/Top-4-Affordable-Halloween-Decor-Ideas.aspx
    ... a hole-puncher and some string. You can even make your own Halloween garland
    by taping or tying the Halloween cutouts together. ...

  • How To Evaluate A Company's Balance Sheet

    http://www.investopedia.com/articles/basics/06/assetperformance.asp
    ... Cash is king, and smart managers know that fast-moving working capital is more
    profitable than tying up unproductive working capital in assets. ...

  • Is Your Portfolio Light On Stocks? It May Be Time For A Switch ...

    http://financialedge.investopedia.com/financial-edge/0111/Is-Your-Portfolio-Light-On-Stocks-It-May-Be-Time-For-A-Switch.aspx
    ... While low risk investments make investors feel better (and safer) these days, the
    opportunity cost for tying up money in low return investment vehicles must be ...

  • The History Of Capitalism: From Feudalism To Wall Street

    http://www.investopedia.com/articles/economics/08/capitalism-history.asp
    ... This eventually included the domestication of plants and livestock, furthering the
    scope of tradeable goods as well as tying people to the land so economies ...

  • Summer: Time For Teaching Your Kids About Money

    http://www.investopedia.com/articles/pf/08/teach-kids-about-money.asp
    ... The Allowance The allowance dilemma is the choice between giving your child money
    simply because you share DNA or tying payments to a task like doing chores. ...

  • TAL International One Of The Few Positive Shipping Stories

    http://stocks.investopedia.com/stock-analysis/2012/TAL-International-One-Of-The-Few-Positive-Shipping-Stories-TAL-BOX-CAP-FRO-TGH0216.aspx
    ... What's more, low per-day rates and high fuel costs are leading many shipping companies
    to slow their ships - tying up more containers at sea for longer periods ...

  • 10 Questionable Investments - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0811/10-Questionable-Investments.aspx
    ... interest rate for a five-year certificate of deposit (CD) is around 2%. If the average
    rate of inflation is 3%, you are actually losing 1% by tying your money ...

  • How can I sell private company stock?

    http://www.investopedia.com/ask/answers/06/privatecompanystock.asp
    ... compensation program. This action is designed to motivate employees by tying
    a portion of their earnings to the company's earnings. In ...

  • The Shape Of Dry Bulk Shipping

    http://stocks.investopedia.com/stock-analysis/2010/The-Shape-Of-Dry-Bulk-Shipping-GNK-EXM-DRYS-NM-EGLE0419.aspx
    ... Of course, picking the wrong stocks can be like tying your money to an anchor
    and tossing it over the side. Get Free Stock Analysis By Email. ...

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