Gypsy Swap – Explained

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

What is a Gypsy Swap?A gypsy swap is a procedure of raising capital whereby the two parties involved in the swap exchange restricted equity shares in return for freely exchangeable shares (or, unrestricted securities), thus increasing the dividend payout for both...

Adjustment Bond – Explained

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

What is an Adjustment Bond?Corporations issue adjustment bonds when it recapitalizes its debts during financial difficulties and bankruptcy proceedings. These bonds are issued against the outstanding bonds to the existing bondholders. When a corporation meets with...

White Candlestick – Explained

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

What is a White Candlestick?A white candlestick refers to a point displayed on a candlestick chart that exhibits a day when there is a rise in the underlying price.How Does a White Candlestick Work?White candlesticks inform about an increase in the price of a security...

Wilcoxon Test – Explained

by TheBusinessProfessor | Feb 23, 2025 | Research, Quantitative Analysis, & Decision Science

What is the Wilcoxon Test?The Wilcoxon test is a nonparametric test used in statistics for comparing two paired sets. This test is either called the Signed Rank test or the Rank Sum test. The main objective of this test is to ascertain and analyze the difference...

White Elephant – Explained

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

What is a White Elephant?A white elephant refers to an investment whose maintenance costs are not in sync with the value of the product or item. Talking in terms of investment, it can be a property or business activity that involves such a huge amount of maintenance...

Trembling Hand Perfect Equilibrium – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is the Trembling Hand Perfect Equilibrium?The trembling hand perfect equilibrium, as defined in game theory, is a situation or state that takes into consideration the possibility of an unintended move by a player by mistake. The probability of this type of play...

Treynor Ratio – Explained

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

What is the Treynor Ratio?The Treynor ratio (also called the reward-to-volatility ratio and similar to the Sharpe Ratio), is a measurement for determining the excess returns of an investment per unit of risk.How Does the Treynor Ratio Work?This ratio is mainly...

Treynor-Black Model – Explained

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

What is the Treynor Black Model?A Treynor Black model seeks to optimize a portfolios Sharpe Ratio by combining an active investment with underpriced securities and a passively managed index fund.How Does the Treynor Black Model Work?Published in 1973 by Jack Treynor...

Treasury STRIPS – Explained

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

What are Treasury STRIPS?STRIPs is an acronym for Separate Trading of Registered Interest and Principal security. Treasury STRIPS are fixed-income securities (they pay fixed-income on maturity) which are purchased below their face value and offer no interest in the...

Stuffing (Securities Trading) – Explained

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

What is Stuffing in a Sale of Securities?In the trade of securities, stuffing refers to an act of trading an unpleasant security. It is a situation in which a broker dealer sells an undesirable security to a client. Once the security is moved from the broker...