by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is a Private Activity Bond?A private activity bond (PAB) is tax-exempt security issued by a municipality or on behalf of a local government to fund a private project. The private projects financed through PAB are projects that benefit the larger community....
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 | Research, Quantitative Analysis, & Decision Science
What is Prescriptive Analytics?Prescriptive analytics is a method of finding the best course of action for a given situation based on the available data. This form of analytics uses technology, mathematical method and simulation algorithms to help a business make the...
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 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 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 a Mortgage Pool?A mortgage pool refers to a group of mortgage loans that serve as the bases for the issuance of a mortgage-backed security, that is, these mortgages are held in trust and form the collateral for a mortgage-backed security. A mortgage pool also...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is Kappa in Option Pricing?Kappa is a ratio that measures the effect of volatility on the price of an option. It measures how much an options price will change given the level of implied volatility, regardless of whether the underlying stocks price remains the...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is the Irrelevance Proposition Theorem?The irrelevance proposition theorem is a theory of corporate capital structure that was developed by Merton Miller and Franco Modigliani in 1958. This theory states that the capital structure of a company does not affect its...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Junior Capital Pool?A junior capital pool (JCP) is a corporate structure that allows a company to issue its shares or stock options to the public before going into an actual business. JCP also refers to a company that engages in such an act. When a company...
