com·bi·na·tion   (kŏm'bə-nā'shən)    n.   The act of combining or the state of being combined. The result of combining. An alliance of persons or parties for a common purpose; an association. A sequence of numbers or letters used to open a combination lock. Mathematics One or more elements selected from a set without regard to the order of selection. com'bi·na'tion·al adj.

Combination

Com`bi*na"tion\, n. [LL. combinatio. See Combine.]

1. The act or process of combining or uniting persons and things.

Making new compounds by new combinations. --Boyle.

A solemn combination shall be made Of our dear souls. --Shak.

2. The result of combining or uniting; union of persons or things; esp. a union or alliance of persons or states to effect some purpose; -- usually in a bad sense.

A combination of the most powerful men in Rome who had conspired my ruin. --Melmoth.

3. (Chem.) The act or process of uniting by chemical affinity, by which substances unite with each other in definite proportions by weight to form distinct compounds.

4. pl. (Math.) The different arrangements of a number of objects, as letters, into groups.

Note: In combinations no regard is paid to the order in which the objects are arranged in each group, while in variations and permutations this order is respected. --Brande & C.

Combination car, a railroad car containing two or more compartments used for different purposes. [U. S.]

Combination lock, a lock in which the mechanism is controlled by means of a movable dial (sometimes by several dials or rings) inscribed with letters or other characters. The bolt of the lock can not be operated until after the dial has been so turned as to combine the characters in a certain order or succession.

Combination room, in the University of Cambridge, Eng., a room into which the fellows withdraw after dinner, for wine, dessert, and conversation.

Combination by volume (Chem.), the act, process, or ratio by which gaseous elements and compounds unite in definite proportions by volume to form distinct compounds.

Combination by weight (Chem.), the act, process, or ratio, in which substances unite in proportions by weight, relatively fixed and exact, to form distinct compounds. See Law of definite proportions, under Definite.

Syn: Cabal; alliance; association; league; union; confederacy; coalition; conspiracy. See Cabal.

Combination

When an investor holds a position in both call and put options on the same asset.

Investopedia Commentary

There are various types of combination spreads, including straddles and strangles.

Related Links

Options Basics Tutorial

See also: Call, Option, Put, Straddle, Strangle

combination

A union of two or more entities, either by merging one or more of the entities into another of the entities or by consolidating the entities into a new entity.

Case Study Lucas Industries PLC and Variety Corporation, two manufacturers of auto and truck brakes, agreed in June 1996 to a combination to be called Lucas-Variety PLC. Managements of both firms indicated the combination was necessary so as to remain competitive in a market that demanded a global presence. The combination also was expected to produce cost savings and to result in tax savings by allowing the new firm to benefit from Lucas's tax-loss carryforwards. Terms of the agreement called for the two firms to merge into a new company through an exchange of shares. Variety's owners would receive approximately 38% of the shares of the new firm while Lucas's owners would receive the other 62% of the shares. The market prices of both firms' shares rose following announcement of the agreement, an indication that investors agreed with managements' assessment of the financial benefits of the merger.

Main Entry: com·bi·na·tion
Function: noun
1 a : an alliance of individuals, states, or esp. corporations united to achieve a common (as economic) end —see also COMBINATION IN RESTRAINT OF TRADE —compare JOINT VENTURE 1, MERGER b : CONSPIRACY
2 : a union of old or new elements or parts that is patentable because it produces a new and useful result —compare AGGREGATION 2, EQUIVALENT

combination
1. A set containing a certain number of objects selected from another set.
The number of combinations of r objects chosen from a set of n is
n C r = n! / ((n-r)! r!)
where "n C r" is normally with n and r as subscripts or as n above r in parentheses.
See also permutation.
2. In the theory of combinators, a combination denotes an expression in which function application is the only operation.
(1995-04-10)