In finance, froth is a term used to describe a situation where prices in a market are rising rapidly and creating a bubble. This can be caused by a number of factors, including speculation, easy credit conditions, and low interest rates. When froth is present in a market, it is often difficult to value assets … Read more
Definition, How It’s Used, and Example. What is market depth? Market depth is a measure of the number of buyers and sellers in a market. It is used to determine the liquidity of a market and how easily prices can be traded. For example, if there are 100 buyers and 100 sellers in a market, … Read more
The semi-strong form efficiency definition posits that all publicly available information is fully reflected in a security’s price. This means that the current market price of a security reflects all relevant information that is publicly available. The semi-strong form of efficiency is stronger than the weak form, which only states that past prices are reflected … Read more
Weak form efficiency is a type of market efficiency that states that prices in the market fully reflect all available information. This means that it is impossible to earn abnormal profits by analyzing past price movements. There are three types of market efficiency: weak form, semi-strong form, and strong form. Weak form efficiency is the … Read more
A horizontal market is a market in which products or services are targeted at a specific industry or sector. Horizontal markets can be further divided into two categories: general purpose and sector specific. General purpose horizontal markets are those in which products or services are targeted at a specific industry or sector, but can be … Read more
When investors are said to be in a risk-on mood, it means they are willing to take on more risk in order to achieve higher returns. This generally leads to a rise in stock prices and other risky assets, such as commodities. When investors are in a risk-off mood, they are more conservative and seek … Read more
