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collar business definition
- In options, buying a put and selling short a call so as to limit the potential profit and loss from an investment position.
- The level at which an index triggers a circuit breaker to temporarily stop trading.
- In an acquisition, an upper and lower limit that will be paid for shares of the company to be acquired.
- In a new issue, a limit on the price or interest rate that is acceptable. See also zero-cost collar.
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