by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Capital Growth Strategy?A capital growth strategy is an investment strategy seeking capital to expand operations in a business lifecycle. The operation expansion is through asset allocation to securities, of course, with high return expectations.How Does a...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is Capital Structure Arbitrage?Capital structure arbitrage refers to a strategy used by companies where they take advantage of the existing market mispricing across all securities to make profits. In this strategy, there is buying undervalued securities and...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is the Capital Market Line (CML)?Capital market line (CML) is a graph representing a portfolio’s expected return based upon a given level of risk. On the horizontal axis is the portfolio standard deviation. On the vertical axis is the expected rate of...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Lattice-Based Model?A lattice-based model is utilized for valuing derivatives; it makes use of a binomial tree to show various paths the underlying asset’s price might take over the life of the derivative. The model’s name is gotten from the...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is the NYSE Composite Index?The NYSE Composite Index refers to an index that calculates the performance of every stock listed on the New York Stock Exchange. The NYSE Composite Index comprises over 1,900 stocks, of which about 1,500 are U.S. companies. Its...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is an Accelerated Return Note?An accelerated return note (ARN) refers to a debt instrument that offers a leverage return, that is a higher return to investors based on the performance of the market index. ARN is a type of debt instrument is unsecured, this is...
