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Warrant (Stock) – Explained

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

What is a Warrant?In finance a warrant is an authority that is given to an investor by a company to purchase its stock at a certain fixed price within a specific period of time regardless of the company’s stock valuation. The stock price offered by the issuing...

Morningstar System – Explained

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

What is the Morningstar System?Morningstar is a financial service firm that provides investment research and investment management services.It has a technology platform providing software as a service and research application for financial advisors.What are the...

Option – Explained

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

Back to:INVESTMENTS & TRADING option The returns and risk of alternative calloptionportfolio investment strategies, Merton, R. C., Scholes, M. S., & Gladstein, M. L. (1978). Journal of Business, 183-242. As earlier discovered in our previous paper on the...

Real Estate Investment Trust (REIT) – Explained

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

What is a Real Estate Investment Trust?Investments made in dividend paying fixed assets, specifically in real estate, are called Real Estate Investment Trust (REIT). REITs raise capital through an Initial Public Offering (IPO), these funds are then used to buy and...

Ponzi Scheme – Explained

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

What is a Ponzi Scheme?A Ponzi scheme is an investment scam that involves the diversion of new investments to pay dividends to existing investors. Fraudulent companies that partake in Ponzi schemes typically lure new investors into their schemes by promising them high...

Rubber Band Effect – Explained

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

What is the Rubber Band Effect?The Rubber Band Effect is used to describe a situation in markets whereby a force can create both enormous opportunities and high volatility. This paints a picture of rise and fall in security or capital markets. In as much as the market...
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