Standard and Poor’s 500 (S&P 500) – Explained

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

What is the Standard & Poor’s S&P 500?Standard & Poors is a globally leading group that provides credible and independent credit ratings in about 26 countries of the world. S&P was founded in 1860, it is reputable for providing top-notch research...

Risk Adjusted Discount Rate – Explained

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

What is the Risk-Adjusted Discount Rate?A risk-adjusted discount rate is the rate obtained by combining an expected risk premium with the risk-free rate during the calculation of the present value of a risky investment. A risky investment is an investment such as real...

Regression Analysis – Explained

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

What is a Regression Analysis?Regression analysis is a statistical method employed in statistical modeling to scrutinize the relationship between a dependent response variable and one or more independent predictor variables. It provides an insight into the manner in...

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...

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...

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,...

American Economic Association – Explained

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

Table of Contents What is the American Economics Association (AEA)? The American Economics Association is a non-profit organization located in Nashville, Tennessee which is made up of university professors in the field of Economics. Since starting in 1885 they now...

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...

London Interbank Offer Rate (LIBOR) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is the London Interbank Offer Rate?How Does LIBOR Work? What is the London Interbank Offer Rate?LIBOR is the acronym or short form of London Interbank Offer Rate. This refers to the international reference rate for unsecured borrowing...

Stamp Duty – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is a Stamp Duty?Stamp duty is a tax on documents. Legal documents do not go unlevied, the tax levied of legal documents such as receipts, bank cheques, land transactions, marriage license and other transaction is called stamp duty. Once payment is made on levied...