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NASDAQ – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is the National Association of Securities Dealers Automated Quotations (NASDAQ)?NASDAQ is an electronic securities marketplace which is the second largest stock exchange in the world in terms of market capitalization, right behind the New York Stock Exchange. The...

Capitalization Rate – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is Capitalization Rate?A capitalization rate, or cap rate, is used by real estate investors to evaluate an investment property and show its potential rate of return, helping the investor decide if she should purchase the property. The formula is: Net Income /...

Capped Fund (Investments) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is a Capped Investment Fund?A Capped Fund is an investment fund that has an annual limit on the operating expenses that can be charged to shareholders. The limit is expressed as the ratio of total operating expenses divided by the average net asset fund. The...

Carried Interest (Finance) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is Carried Interest?Carried Interest (or carry) is the share of the earnings that the general owners of hedge funds and private equity funds get as compensation when the funds investments are profitable. This compensation method is intended to motivate the...

Rule of 72 – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is the Rule of 72?It is a simple calculation method to estimate an investments doubling time with a specific fixed annual interest rate. It is the easiest and fastest way to calculate how long an investment will take to double, given a fixed annual rate of...

Random Walk Theory (Stock Market) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is the Random Walk Theory?The Random Walk Theory or Random Walk Hypothesis is a financial theory that states the prices of securities in a stock market are random and not influenced by past events. It suggests the price movement of the stocks cannot be predicted...
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