Edgeworth Price Cycle – Explained

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

What is the Edgeworth Price Cycle?An Edgeworth price cycle is a cyclical, asymmetric sequence that is observed in the gasoline markets across the globe. The cycle demonstrates a rapid increase in prices and the followed by gradual decreases in prices to come back to...

Efficient Market Hypothesis – Explained

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

What is the Efficient Market Hypothesis?The efficient market hypothesis (EMH) is a financial market theory which states that the market price of a financial asset reflect all the available information. An efficient market shows all the market information available at...

Downtick (Financial Markets) – Explained

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

What is a Downtick in the Market?When a financial instrument sells at a lower price than the previous transaction, it is called the downtick. It happens when a stocks price decreases from the preceding price. It is the opposite of uptick. It is generally used for...

Dow Jones Global Indexes – Explained

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

What are the Dow Jones Global Indexes [Indices]?The Dow Jones Global Indexes (indices) are market-capitalization weighted indexes that reflect the price changes of the stocks of different national and international firms from across 29 countries. There are around...

Dow Theory – Explained

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

What is Dow Theory?It is a theory based on the editorials written by Charles H. Dow, published in The Wall Street Journal. Charles H. Dow is the founder and first editor of this acclaimed financial news journal. He also founded Dow Jones and Company along with Edward...

Dividend Reinvestment Plan – Explained

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

What is a Dividend Reinvestment Plan?A Dividend Reinvestment Plan (DRIP) is a plan that allows investors to reinvest their dividends into additional shares or fractional shares. The shareholders receive dividends from the companies periodically. It is a share of the...