Investor Glossary-chicago board of tradeInvestor Glossary-chicago board of tradeInvestor Glossary-chicago board of tradeInvestor Glossary-chicago board of tradeInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Chicago Board Of Trade

The HTML to link to this page
 

The Chicago Board of Trade (CBOT) is a commodities exchange located in Chicago, IL, and one of the busiest institutions of its kind in the world. Thousands of members trade futures and options on the Chicago Board of Trade (e.g. U.S. Treasuries, grains, livestock, precious metals, etc.). In 1848, a group of local business leaders founded the Chicago Board of Trade in an attempt to smooth out the boom and bust cycle of grain prices. Through the 19th century the Chicago Board of Trade grew in importance to the city's and region's economy. However, throughout its growth the Chicago Board of Trade also had difficulty preventing market manipulation, particularly by traders who tried to "corner" the market in various commodities. The Grain Futures Act of 1922 and the Commodity Exchange Act in 1936 imposed regulations on the Chicago Board of Trade aimed at curtailing these activities. Trading of financial instruments on the Chicago Board of Trade began in the 1970s. In 1973 the Chicago Board of Trade established the Chicago Board Options Exchange (CBOE), a sister entity. By the 1990s, the Chicago Board of Trade was facing increased competition from more efficient electronic exchanges. This prompted the Chicago Board of Trade to initiate efforts toward implementing electronic trading in 2001. In 2006 the Chicago Mercantile Exchange announced plans to buy out the Chicago Board of Trade, and in 2007 the exchanges merged to form CME Group.



Rate this Chicago Board of Trade definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: irrevocable trust, minority interest, Zero Cost Collar, 144a, open position, EBITDA, 1035 exchange, annual return, FICO score, phantom income, in escrow, diluted share, deferred revenue, real GDP, deferred tax, current ratio, FTSE, 1031 exchange, dividends payable, margin rate, stock market close, limit order, VIX, retained earnings, per diem, debt service coverage, class C shares, stock split, average price per share, ex-dividend, command economy, ex-dividend date, reverse mortgage, liquidity ratio, option premium, risk management, quality assurance, 401a, required rate of return, cancelled check, implied volatility, covered put, LIBOR, Key Rate Duration, labor relations, wholly-owned subsidiary, APR, balance sheet, inflation


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use