by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is an Exit Fee?An exit fee is a cost that investors incur at the time redeeming shares from a specific fund, usually open-ended mutual funds. At the time of exiting a mutual fund, an investor pays an exit fee followed by back-end sales load related to the class...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Liquidity Premium?Liquidity premium refers to a premium that investors demand when the conversion of security into cash at fair market value becomes difficult. The assets are considered illiquid when there is high liquidity premium. For this reason,...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is the American Municipal Bond Assurance Corporation?The American Municipal Bond Assurance Corporation provides insurance against default on municipal bond offerings.How Does the American Municipal Bond Assurance Corporation Work?The American Municipal Bond...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Bellwether?A bellwether, often misspelled as bellweather, refers to an indicator or event which displays the likely presence of a trend. The performance of specific stocks/companies and bonds are seen by analysts to depict the condition of the financial...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Behaviorist?A behaviorist refers to one who adheres to the behavioral economics theory. This theory holds that investors neither act rationally nor do they act in their best interests. Investing decisions, like every human activity, are subject to a complex...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is an Average Annual Return?Average annual return (AAR) refers to a percentage utilized when reporting the historical return, like the three-, five-, and ten-year average returns of a mutual fund. The average yearly return is stated net of a fund’s...
