by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is After-Hours Trading?After-hours trading is a period when normal buying and selling of securities in the exchange market has closed. It is a term that describes trading activities done after the closing hours. After-hours trading can also refer to trading that...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Binomial Tree?In the finance field, the term binomial tree refers to a graphical representation with possible intrinsic values showing that an option may take place at different periods or nodes. Under this model, the options value depends on the underlying...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Collateralized Debt Obligation?A collateralized debt obligation (CDO) is asset-backed security sold to investors in the market. CDOs represent different assets pooled together and repackaged by banks to be sold to investors in the market. A collateralized...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Collateralized Mortgage Obligation?A collateralized mortgage obligation (CMO) is structured security or mortgage-backed security that contains a set of mortgages structured and traded as an investment. A CMO is fixed income security that is designed based on...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Collective Investment Fund?A Collective Investment Fund (CIF) is a fund made up of a group accounts or funds pooled and held by a trust or bank. CIF is otherwise called a collective investment trust (CIT), it is an investment instrument available to...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Bond?Bonds are financial instruments representing a loan usually by an investor to a company. The owners of bonds are called debtholders or creditors. Bonds details documents such as I.O.U between the lender and the borrower, the maturity date of the loan,...
