spot market

spot market
USA
A commodities or securities market in which goods are sold under a purchase order or contract at the price prevailing at the time of the sale and delivered immediately. The purchaser is not obligated to acquire any additional goods or services. Spot market sales are resisted in project finance transactions because there is no consistent revenue flow that can be relied on to repay the debt incurred to construct the project. An offtake agreement is the preferred method used to sell a project's output.
For a discussion of the importance of consistent cash flow in project finance transactions, see Practice Notes, Project Finance: Overview: Project Output or Offtake Agreement (www.practicallaw.com/7-382-7004) and Identifying and Managing Project Finance Risks: Offtake Risk (www.practicallaw.com/9-382-9356).
Related links

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Игры ⚽ Нужен реферат?

Look at other dictionaries:

  • spot market — Market for the purchase or sale of financial instruments, commodities, or other assets for cash settlement and immediate, as opposed to future, delivery. Also called the cash market. American Banker Glossary The market in which cash transactions… …   Financial and business terms

  • Spot market — The spot market or cash market is a commodities or securities market in which goods are sold for cash and delivered immediately. Contracts bought and sold on these markets are immediately effective. Spot markets can operate wherever the… …   Wikipedia

  • Spot Market — 1. A commodities or securities market in which goods are sold for cash and delivered immediately. Contracts bought and sold on these markets are immediately effective. 2. A futures transaction for which commodities can be reasonably expected to… …   Investment dictionary

  • spot market — noun a market in which a commodity is bought or sold for immediate delivery or delivery in the very near future • Hypernyms: ↑commodity exchange, ↑commodities exchange, ↑commodities market * * * a market in which commodities, as grain, gold, or… …   Useful english dictionary

  • spot market — n. the open market where deals are made on the spot. (Securities markets.) □ Oil reached nearly twenty five dollars a barrel on the spot market. □ Gold prices on the spot market finally reached $600 per ounce and then promptly collapsed …   Dictionary of American slang and colloquial expressions

  • spot market — noun A market in which commodities are bought and sold for immediate delivery. Delivery usually takes place in the same or next business day. The price on the futures market depends in part on the price on the spot market. See Also: on the spot …   Wiktionary

  • Spot market /natural gas —   A market in which natural gas is bought and sold for immediate or very near term delivery, usually for a period of 30 days or less. The transaction does not imply a continuing arrangement between the buyer and the seller. A spot market is more… …   Energy terms

  • spot market — /ˈspɒt makət/ (say spot mahkuht) noun a market, especially the foreign exchange market, in which settlement is immediate. Also, cash market, physical market …  

  • spot market — / spɒt ˌmɑ:kɪt/ noun the market for buying oil for immediate delivery ▪▪▪ ‘…with most of the world’s oil now traded on spot markets, Opec’s official prices are much less significant than they once were’ [Economist] …   Marketing dictionary in english

  • spot market — / spɒt ˌmɑ:kɪt/ noun the market for buying oil for immediate delivery ▪▪▪ ‘…with most of the world’s oil now traded on spot markets, Opec’s official prices are much less significant than they once were’ [Economist] …   Dictionary of banking and finance

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”