Special Purpose Vehicle (SPV)

A special purpose vehicle (SPV) is an entity (typically a company) which operates as a subsidiary of another entity. The assets of an SPV are legally separated from the assets of the parent entity. This makes SPVs a useful vehicle for entities looking to hedge their investments against the consequences of possible bankruptcies. Shares in SPVs are traded on some stock exchanges.

More on this topic:
Stocks explained
ETFs explained
Swiss online broker comparison tool

Editor Daniel Dreier
Daniel Dreier is editor and personal finance expert at moneyland.ch.