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black box definition - finance
A complex software program that is used to determine a price that a security should be sold at, indicate what trades should be done, or give the result of a financial calculation. The inner workings of a black box pricing formula are not explained to the users or are very complex and hard to understand, so users refer to the end result as black box number.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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