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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Bear Spread

Definition:

Sounds like something scandalous at Yosemite, but really, it refers to a situation where an options trader buys and sells options in the same class at the same time. The trader thinks that the underlying security prices will drop. By buying options on different dates, losses can be kept to a minimum.