by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is the House Money Effect?The house money describes a cognitive bias in which investors take higher risks when reinvesting than they would when investing their initial capital. This bias explains the tendency of investors to take on greater risks because they...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is an Annualized Rate?An annualized rate is a computed annual rate of return that an investor gets over a certain period. The Global Investment Performance Standards dictate that portfolios returns may not be annualized. It prevents the performance that has been...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Piotroski Score?The Piotroski score refers to a discrete score between 0-9 reflecting nine criteria that are used to determine the strength of a firm’s financial position. How is the Piotroski Score Used?The use of the Piotroski score is used to...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Fixed Annuity?A fixed annuity refers to a type of contract between you and the insurance company. It allows you to accumulate capital over a long period of time through a tax-deferred basis. In exchange, the insurance company guarantees you of your premium...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Protected Fund?A protected fund refers to a type of mutual fund that guarantees investors a portion of their initial investment. The protected fund allows the shareholders to make a return from their investment in the stock market while guaranteeing their...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is the Stock Market Capitalization-to-GDP Ratio?The stock market capitalization-to-GDP ratio is a ratio that measures the overall value of all publicly traded stock in a market in comparison to the country’s gross domestic product (GDP). This ration is...
