financial engineering

financial engineering definition - finance
The creative application of financial technology to solve financial problems or create financial opportunities. Financial engineering involves creating desirable cash flows from new or existing investments. Financial engineering may tackle a problem such as determining how to allocate investment capital in order to maximize investment returns. Techniques that might be used include optimization technologies such as linear and quadratic programming.

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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