tail investment & finance definition
- In
Treasury auctions, the difference between the lowest competitive bid that was
accepted and the average bid by all of those offering to buy the particular
Treasury security.
- In the insurance industry, the time
between when premiums are received and benefits need to be paid. For example,
a reinsurance company, which
provides coverage to other insurance companies, has a long tail because their
coverage is called on only if the insurance company incurred certain amounts of
losses.
See tail in Wall Street Words
- In a bid for a new security issue, the portion of the bid price that follows the decimal. For example, a bid of $92.125 has a tail of .125.
- The difference between the average bid and the lowest bid at an auction for Treasury securities.
Learn more about tail