by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is Convexity?In the bond world, convexity is simply defined as a measure of the sensitivity of the bonds duration to change its yield. Convexity is believed to be a good measure for bond price changes that are accompanied by greater fluctuations in their interest...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Centralized Market?A centralized market is a financial market free of competing parties (markets). A centralized market is structured in a way that allows all orders (purchase and sale) to be transferred to a central exchange. There is an absence of...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is the Anti-Reciprocal Rule?The Anti-Reciprocal Rule is a regulation by the Financial Industry Regulatory Authority (FINRA) that prohibits a mutual fund manager and a brokerage firm from colluding to engage in business transactions that will affect a client...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Federal Credit Union?A federal credit union is regulated by the National Credit Union Association (NCUA). This credit union offers banking services such as online banking, bill payment, checking accounts, issuance of loans, mortgages, and others. As...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is the Preferred Habitat Theory?The preferred habitat theory, a term structure, which is a variant of the liquidity premium theory; states that in addition to interest rate expectations, investors have distinct investment horizons and require a meaningful premium...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is an Event-Driven Strategy?A type of investment strategy that seeks to exploit pricing inefficiencies that may occur before or after a corporate event, such as a bankruptcy, restructuring, merger/acquisition, takeover or spinoff is known as an event driven...
