by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is the Black Box Model?A black box model describes the relationship between the inputs and outputs of a system. This model is used in different contexts and has different meanings. As it is often used in science, computing and engineering, a black box model is a...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is Bilateral Netting?Bilateral netting is a legal process of merging or consolidating all swap agreements between two parties into a single agreement. Through this process, all the swaps are netted together to create a single legal obligation, hence, rather than...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Bogey?Bogey is a slang term used to describe a benchmark used to evaluate an investments performance. A bogey can be used in mutual funds as an index benchmark through which the performance of the fund can be evaluated. Oftentimes, fund or portfolio managers...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is an Individual Retirement Annuity?An individual retirement annuity is an investment account or a retirement plan that allows individuals to make contributions and build their retirement savings. Just like an individual retirement account (IRA), an individual...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is an Information Ratio?The Information Ratio (IR) is a ratio that measures the performance of an investment, fund or portfolio by comparing the returns generated with the returns of a benchmark, usually a market index. IR measures the excess returns of a...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Differential in Securities Trading? In the context securities trading, a differential refers to the extra amount of charge added to the purchase price of a security or subtracted from the selling price. This term also describes the extent of adjustment made...
