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tail investment & finance definition

  1. 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.
  2. 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.

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