by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Forward Contract?A forward contract is referred to as a customized contract physically signed between party A and party B, i.e., face to face (or over the counter) in regards to a future transaction of an asset. The contract is used by both parties to...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Qualified Foreign Institutional Investor?A Qualified Foreign Institutional Investor (QFII) is a non-Chinese individual or organization granted permission by the Government of China to trade on stock exchanges in Shanghai and Shenzhen.What Does a Qualified...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Cash and Carry Transaction?A cash and carry transaction is also known as a cash and carry arbitrage, this transaction applies to the trade of derivative products or futures contract. In a cash and carry transaction, the price of a commodity is lower than the...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Certificate of Government Receipt?A Certificate of Government Receipts (COUGR) is a U.S treasury Bond sold by the United States Department of Treasury to investors through A.G. Becker Paribas. Investors buy this type of bond at a discount and redeem it at...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is the Volcker Rule?The Volcker Rule is the common name for section 13 of the Bank Holding Company Act of 1956. It is a federal regulation that prohibits banks as well as institutions that own banks from conducting proprietary trading activities from their own...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is Relative Return?Relative return is a measure used in investing that estimates the return on an asset or any other investment portfolio over a specific period of time relative to a theoretical benchmark. The relative return is calculated as the difference...
