There are many different types of investments that people can choose to make. However, before making any type of investment, it is important to understand the basics of investing. This includes understanding the different types of investments available, the risks associated with each type of investment, and the potential rewards that can be earned. The … Read more
A short sell against the box is a type of short sale in which the investor borrows shares of the stock that he or she already owns in order to sell them. The investor then hopes to buy the shares back at a lower price so that he or she can return them to the … Read more
Outperform is an investment term used to describe a security that is expected to generate returns that exceed the benchmark or average returns in the market. An outperforming security is typically one that is undervalued by the market and has strong fundamentals that are not fully reflected in its price. Outperform is often used by … Read more
A cash investment is the purchase of a financial product or other asset for cash. The cash may be used to buy the asset outright, or it may be used as collateral for a loan. Cash investments are often made in anticipation of future income or capital gains, but they can also be made for … Read more
The term “value” refers to the estimated future economic benefits of an investment, including the expected return on investment. The value of an investment is based on a number of factors, including the expected return on investment, the riskiness of the investment, the investment’s time horizon, and the investor’s own preferences and goals. Who is … Read more
Capital recovery is the process of recouping the initial investment in an asset through periodic payments, typically over the course of its useful life. The payments may be made in equal installments, or they may vary over time. The goal of capital recovery is to ensure that the asset produces enough income to cover its … Read more
The term “accrual rate” refers to the rate at which interest accumulates on a loan or investment. This rate is typically expressed as a percentage of the loan or investment’s principal balance. For example, if a loan has an accrual rate of 5% per year and a principal balance of $100,000, the interest that accrues … Read more
Direct investment, also known as foreign direct investment (FDI), is defined as an investment made by a company or individual in one country in business interests in another country, in the form of establishing ownership or controlling interest in a foreign company. Different from portfolio investment, which refers to investing in foreign stocks and securities, … Read more
An inflection point is the point at which a curve changes from concave to convex, or vice versa. In other words, it is the point at which the second derivative of a function changes sign. How this affects investors is that an inflection point in the market is the point at which a stock or … Read more
The term “import” refers to the process of bringing goods or services into a country from another country. This can be done either by buying goods or services from another country, or by receiving them as a gift or loan. What is FOB value? FOB value is the value of goods shipped from one country … Read more
