If you’re a bag holder, it means you own a security that has lost value and is now worth less than what you paid for it. Bag holders are often reluctant to sell their losing investment, hoping it will eventually rebound in value. But if the security continues to fall in value, the bag holder … Read more
Portfolio turnover is a measure of how often the securities in a portfolio are traded. A high turnover rate means that the portfolio is being actively traded, while a low turnover rate means that the portfolio is being held for a longer period of time. The turnover rate can be calculated by dividing the number … Read more
A dawn raid is a type of surprise inspection that is conducted by regulatory authorities. The purpose of a dawn raid is to gather evidence of possible illegal or unethical activities. Dawn raids are often conducted without prior notice, and they can be extremely disruptive to businesses. Dawn raids are typically conducted by teams of … Read more
Types, Purpose, and How To Write One. What is a White Paper? A white paper is a type of informational document that is commonly used in business. White papers are typically used to provide information about a company or product, or to persuade potential customers to purchase a product or service. White papers are usually … Read more
. Nash Equilibrium: How Game Theory Works, Examples, Plus Prisoner’s Dilemma What is the best strategy in prisoners dilemma? There are a few different ways to approach the prisoners dilemma game. The most common way is to try to find a Nash equilibrium, which is a set of strategies where no player can improve their … Read more
Random Walk Theory: What It Is, How It Works, and an Example. What is random walk without drift? A random walk without drift is a term used in finance to describe the motion of a security’s price over time that is not influenced by any external factors. The security’s price is said to be “random” … Read more
Swing Trading: Advantages and Disadvantages for Investors Is swing trading better? There is no simple answer to this question as it depends on a number of factors, including the trader’s goals, risk tolerance, and trading style. However, swing trading generally refers to a strategy whereby traders look to take advantage of short-term price movements in … Read more
Rolling settlement is the process whereby trades are settled on a continuous basis throughout the trading day, as opposed to being settled at the end of the day as is the case with most other markets. This is done by closing out open positions at the end of each trading day and then re-establishing those … Read more
A pure play is a company that focuses on a single line of business. This allows investors to more easily predict how the company will perform, since it isn’t diversified and therefore isn’t as affected by factors outside its core business. For example, a company that focuses on selling electric vehicles would be a pure … Read more
