by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is an Options Contract?An options contract refers to an between a buyer and a seller of securities in which both parties reach a consensus to buy or sell the underlying security at a later date at an agreed price. The price at which the underlying security is to...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is Out Of The Money?Out of the money (OTM) is a term commonly used in options contracts, whether it is a call option or put options. A call option is out of the money if the strike price (preset price) of the underlying asset is higher than the current market...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is the Pipeline Theory?Pipeline theory is the notion that an investment firm passing every return on to clients shouldn’t be taxed like regular companies. Pipeline theory includes dividends, capital gains, and interest as returns which should be considered....
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What are Pink Sheets?Pink sheets are a listing service for stocks that trade through over-the-counter (OTC) transactions. Pink sheet listings are companies that are not listed on a major exchange such as Nasdaq or the New York Stock Exchange. Stocks that are listed on...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is Irrational Exuberance?Irrational exuberance is a term used when the enthusiastic nature of investors towards a certain asset or financial instrument drives the price or the value of such asset or instrument to a point that defies fundamentals. Fundamentals in...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is the Prudent-Person Rule?The prudent-person rule refers to a legal rule which subjects an investment manager or a portfolio manager to make the right decisions on behalf of their clients. Also known as the prudent man rule, this legal law states restricts the...
