A caveat subscriptor is a legal notice that is placed on a document to indicate that the person who signs it does so with the understanding that they may be held liable for any damages that may result from their signature. This notice is often used in contracts and other legal documents to protect the … Read more
Risk capital refers to the money that investors are willing to lose without negatively impacting their lifestyle. For many investors, this money is invested in high-risk, high-reward ventures, such as penny stocks, start-ups, and venture capital. While there is no surefire way to earn a profit on these investments, they can offer the potential for … Read more
The trade date is the date on which a trade is executed. For most securities, the trade date is the same as the settlement date, which is the date on which the trade is settled. However, for some securities, the settlement date is different from the trade date. What are the basics of trading? In … Read more
Secular market trends are long-term trends that last for several years, typically 5 years or more. They are different from cyclical trends, which are shorter-term ups and downs that occur within a secular trend. For example, the current secular bull market in stocks began in 2009 and is still going strong. Investors can profit from … Read more
Returns in investing are the earnings generated from an investment over a period of time. They can be measured in absolute terms, such as dollars, or in relative terms, such as percentage. How do you measure the returns of individual securities? There are several ways to measure the returns of individual securities. The most common … Read more
Heuristics are mental shortcuts that humans use to make decisions quickly. These shortcuts are often based on past experiences or observations. Heuristics can help people make decisions quickly in situations where they don’t have time to weigh all of the options. Heuristics can also lead to biased decision-making. This can happen when people rely too … Read more
An audit trail is a sequence of records that document when a particular event occurred. In the context of investing, audit trails are commonly used to track the purchase and sale of securities. Audit trails can also be used to track the movements of assets between different accounts or locations. Audit trails can be used … Read more
A crossover investor is an individual who invests in both traditional and alternative investments. Traditional investments include stocks, bonds, and mutual funds, while alternative investments include hedge funds, private equity, and real estate. Crossover investors typically have a higher risk tolerance than investors who only invest in traditional assets, as alternative investments are often more … Read more
An investment vehicle is a legal entity through which investors can hold and manage their investments. The most common investment vehicles are corporations, trusts, and partnerships. Each has its own advantages and disadvantages, so it’s important to choose the right one for your needs. Corporations offer limited liability and easy transferability of ownership, but they … Read more
The nominal rate of return is the rate of return on an investment before taking inflation into account. In other words, it is the rate of return in “real” terms. The nominal rate of return is often used to track investment performance, as it provides a more accurate picture of how an investment has performed … Read more
