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Jumbo Pool (Mortgages) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is a Jumbo Pool?A Jumbo Pool is a set of similar mortgage loans from different mortgage lenders. It is a diversified mortgage-backed security made available to investors on the open market. Jumbo pools have an edge over single-issuer pools because they are sets...

Efficient Frontier (Investment) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is the Efficient Frontier?The efficient frontier is a combination of the most favorable portfolios that offer returns at a high rate and have the lowest risk. It is a set of optimal portfolios that maintain efficient positions in terms of expected return and...

Electronic Communication Network – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is an Electronic Communication Network?An electronic communication network (ECN) is a computer-based system of trading that takes trading outside of the physical market. It is a computerized system that allows investors trade securities and other financial...

Elliott Waves Theory – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is the Elliott Wave Theory?The Elliott Wave Theory was developed in 1933, it was developed as an approach to describing price movements in the market as well as prevalent market cycles. This theory was named after Ralph Nelson Elliott, the scholar who developed...

Embedded Option (Bonds) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is an Embedded Option?An embedded option is a provision attached to bonds in which the bondholder or the issuer of the bon to carry out certain actions against the other party at some time in the future. Diverse kinds of options can be embedded into a bond, for...

Gamma (Options Pricing) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is Gamma in Options Pricing?Gamma is a tool used to measure the rate of an options price changes with regard to the underlying asset. Gamma that is positive is an indication that the trading position is also positive. Contrarily, when there is an upward or...
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