protected strategy

protected strategy definition - business

protected strategy

An investment strategy with a goal of limiting risk. For example, purchasing a stock and a put on the stock establishes a limit on the amount of money that may be lost, since the put protects against losses derived from a declining value of the stock. Although protected strategies limit losses, they also generally penalize potential profits.

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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