by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Mutual Fund Theorem?The mutual fund theorem is an investment strategy that allows an optimal portfolio construction under given circumstances. According to this theorem, mutual funds can be used exclusively in a portfolio for diversification and...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is the Monday Effect?Monday effect is a theory that describes market trends in which the trading pattern of Friday will continue at the opening of trade on Monday. This theory is often used in the Stock market, it shows hoe returns and prevailing patterns of a...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Master-Feeder Fund?A master-feeder fund structure is commonly used in a hedge fund to pool assets and capitals from the United States and foreign countries into a central investment vehicle called the master fund. The master-feeder fund is simply called...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Principal-Protected Note?A principal-protected note (PPN) is a type of security where the bondholder is guaranteed to receive the amount of capital originally invested at the minimum if the security is held to maturity. The performance of the underlying...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Base Currency?The base currency is the first currency in a forex pair quotation referred to as the transaction currency. The second of the pair is the quote currency or the counter currency. The base currency can be used to represent all profits and losses...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Continuous Quotation System?A continuous quotation system is defined as a securities trading system which when orders are placed, creates room for transactions and market makers. Securities are investment instruments that provide evidence of debt or equity...