What is 'free trade'? Definition & meaning

The other free trade. International trade in which countries allow goods to flow across their borders without imposing import or export taxes.

More terms

Investment Return

The amount of money made or lost from an investment. Usually expressed as a percentage.

Arithmetic Mean

The sum of a set of numbers added together and then divided by the total amount of numbers in that set.

Equity

The amount of money a company would be left with by subtracting its liabilities from the value of its assets.

Net Income (NI)

The money a firm is left with from sales after subtracting taxes and different business costs.

Xetra

A trading venue operated by the Frankfurt Stock Exchange.

W-8BEN Form

Non-US individuals and businesses may have to file this form for the Internal Revenue Service (IRS), the US tax authority.

Value Investing

The art of buying shares which trade below their value, according to the analysis of the value investor.

Alpha

The percentage by which an investor outperforms a relevant benchmark.

Spot Rate

The currency exchange rate a bank quotes, valid with immediate effect.

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Free Trade