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Systemic Risk – Explained

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

What is Systematic Risk?Systematic risk is a market risk that affects the entirety of the market, including industries, stocks and other markets.This risk is the vulnerability or volatility that affects the market. The systematic risk is the liability of markets,...

Securities Investor Protection Corporation – Explained

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

What is a Securities Investor Protection Corporation?The Securities Investor Protection Corporation (SIPC), is a non-profit organization that protects investors. SIPC was created upon the passage of Securities Investor Protection Act of 1970. The membership of SIPC...

S&P Case-Shiller US Home Price Index – Explained

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

What is the S&P CoreLogic Case-Shiller National Home Price Index?The S&P/ CoreLogic Case-Shiller Home Price Indexes -also known simply as the Case-Shiller Home Price Indexes – refers to a group of indexes that measures or tracks the average changes in...

Collar Agreement – Explained

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

What is a Collar Agreement?A collar agreement is a popular method to lock-in a given scope of possible return outcomes or by hedging risks. A collar is a well-known financial strategy to limit the potential outcomes of an uncertain variable to an acceptable range. The...

Prepaid Variable Forward – Explained

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

What is a Prepaid-Variable Forward?A prepaid variable forward contract (PVFC) is a strategy employed by investors who have large stocks and want to generate liquidity. Under a PVFC, an investors agrees to sell certain amount of shares at a discount, usually between...

Sinking Fund – Explained

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

What is a Sinking Fund?A sum of money set aside periodically to create a fund that covers debt repayment for money borrowed on bonds, is called the Sinking Fund. It reduces the difficulties in managing payments for large outlays once the bonds have matured.How Does a...
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