by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is the CBOE Volatility Index (VIX)?The CBOE Volatility Index (CBOE VIX) is a measurement of the 30-day expected volatility of the US stock market. This index measures the possible future volatility in the stock market in the period of 30 days. This index was...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Composite?A composite refers to a group of related items or parts of a whole. When similar items are put together, a composite is realized. In the context of securities, a composite refers to a grouping of securities, indexes or other related items. When...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
Update Table of Contents What is Distressed Securities?What is a Distressed Security?What Happens to Distressed Securities in Bankruptcy Cases?When Are Securities Considered Distressed? What is Distressed Securities?Distressed securities are securities or financial...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is Dividend Irrelevance Theory?The dividend irrelevance theory was developed by Franco Modigliani and Merton Miller in 1961. This theory maintains that dividend policy does not have an impact on stock’s cost of capital or stock price. The dividend...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Brokerage Company?A brokerage firm is a firm that connects buyers and sellers for transactions. This firm can also buy and sell securities on behalf of clients. The services offered by brokerage firms are in exchange for a fee or commission. An individual...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is the Cox, Ross, & Rubinstein Option-Pricing Model?The two-item option-pricing model, also known as CRR, is a mathematical formula used to estimate the value of an American options value. It is exercisable at any given time up to the expiration date. CRR...
