Buy-Stops Above – Explained

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

What are Buy Stops Above?Buy Stops Above is a form of trading strategy where an investor is of the view that the price of a stock will increase at a certain point of time after it passes a certain phase of resistance. In this strategy, an investor prefers to place a...

Buy and Hold (Investing Strategy) – Explained

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

What is a Buy and Hold Investing Strategy?Buy and hold refers to a passive investment strategy where the investor tends to buy stocks and hold them for a long time irrespective of the market fluctuations. The person who is ready to invest in buy and hold investment...

Taping Rule (Securities) – Explained

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

What is the Taping Rule?The taping rule refers to disciplinary measure, which was approved by the National Association of Securities Dealers (NASD). This was to be applied to firms that have surpassed the specified hiring percentage of their employees, from firms...

Ratable Accrual Method (Bonds) – Explained

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

What is the Ratable Accrual Method?The ratable accrual method refers to a technique used to determine the amount of income earned, at a given period and the period the amount was earned. In other words, the ratable accrual method is the one used to calculate interest...

Margin Account – Explained

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

What is a Margin Account?A margin account is a type of brokerage account that allows the investor to utilize a cash loan from the broker in addition to his own funds in order to purchase stocks or other financial products. Margin accounts are typically used by...

MAR Ratio – Explained

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

What is a MAR Ratio?The Managed Account Reports Ratio, popularly known as the MAR Ratio, is a measurement of the return per unit of risk, and is used to compare performances of fund managers, commodity trading advisors and hedge funds. Risk is defined as the maximum...