formula plan

formula plan definition - business

formula plan

The buying and/or selling of securities according to a predetermined formula. This approach to investment decisions is intended to eliminate the investor's emotions and instead follow a mechanical set of rules. A huge number of formula plans have been developed over the years.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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