by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is an Arbitrage Bond?An Arbitrage bond is a bond issued by a municipality to refinance an existing higher-rate bond with a lower-rate bond prior to the call date of the former. Arbitrage bonds are issued by municipalities when they want to take advantage of the...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is the Black-Litterman Model?The Black-Litterman model is a model used for an asset or portfolio allocation. This model was developed by two theorists at Goldman Sachs in 1990. The Black-Litterman model was named after Fischer Black and Robert Litterman, the...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Commodity Pool?A commodity pool is a type of investment trust or syndicate where different traders pool funds together to trade in futures and commodities market. In a commodity pool, several investors combine their contributions solely for the purpose of...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is the Clientele Effect?The clientele effect stems from the idea that the kind of investors that are attracted to a security or investment as well as their goals for the investment determine the price movement of such security. The clientele effect explains how...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Close Location Value?CLV is an indicator that states an asset closing price in relation to the High-Low range. This range is between +1 and -1. +1 indicates that the closing price is near its High and -1, near its low. This is used in technical analysis to...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Closed-End Management Company?A closed-end management company is an investment company that operates closed-end mutual funds with a limited number of shares sold to investors just like an initial public offering. This company sells specific shares to...
