by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Short Position?A short position is a directional position used by investors when trading securities in the market. This position entails a trader selling a security with the aim or repurchasing the same security when there is a decline in security price so...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Required Rate of Return DefinitionThe required rate of return (RRR) refers to the least profit, return or money that an investor is expected to receive from an investment or holding the shares of a company. The minimum return that an investor gets as...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is Active Trading?Active trading is the purchase and sale of securities for fast profit on the basis of short-term price movements.How Does Active Trading Work?Active trading seeks profit from price movements in markets of high liquidity. Because of this, active...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is Semi-Strong Form Efficiency?Semi-strong form efficiency is a concept that suggests that the release of public news of a particular stock increases its existing stock prices. This concept is a part of the Efficient Market Hypothesis (EMH).How Does Semi-Strong...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Market Risk?Market risk refers to the risk where there is a possibility of an investor experiencing a decrease in value of an investment as a result of changes in financial market factors. Note that you cannot completely eliminate market risk through...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is Market Segmentation Theory?The market segmentation theory is the assumption that both short-term and long-term interest rates have no correlation whatsoever. In addition, the theory states that the interest rates for each different maturity segment vary. Note...
