The sustainable investor for a changing world

Financial glossary


Portfolio turnover

The portfolio turnover measures the portion of a portfolio that is replaced on a yearly basis. Several methods of calculation exist. This number can be calculated, for example, as the ratio of the number of purchases or sales (whichever is the lesser) compared to the portfolio’s average asset value.

Private Equity

Private equity refers to investment in equities of companies that are not publicly traded on listed markets.

Put option

A put option is a financial contract between two parties where the buyer of the option pays a fee (premium) to have the right, but not the obligation, to sell an agreed quantity of a particular commodity or financial instrument (the underlying) to the seller of the option at a certain time (the expiration date) for a certain price (the strike price.) The seller of the option is then obliged to buy the commodity or financial instrument should the buyer decide to exercise his option.


© 2021 BNP PARIBAS ASSET MANAGEMENT USA, Inc., All rights reserved.
BNP PARIBAS ASSET MANAGEMENT USA, Inc. is registered with the U.S. Securities and Exchange Commission as an investment adviser under the Investment Advisers Act of 1940, as amended.
These documents and video clips may also include information obtained from affiliated investment management companies within BNP Paribas Asset Management, the brand name of the BNP Paribas group’s asset management services. The documents and video clips are produced for informational purposes only and do not constitute: 1. an offer to buy nor a solicitation to sell, nor shall they form the basis of or be relied upon in connection with any contract or commitment whatsoever or 2. investment advice. Any opinions included in these documents and video clips constitute the judgment of the author/ presenter at the time specified and may be subject to change without notice.