Financial Theory Articles

A diversified portfolio will protect you in a tough market. Get some solid tips here!

By following the strategies of the pros, even a beginner can learn to invest like an expert.

Here are 5 prize-winning economic theories that you’ll want to be familiar with.

Learn about Okun's Law, why it is important and how it stood the test of time since first being published.

Hedge fund analysis requires more than just the metrics used to analyze mutual funds.

Find out how VC firms make the market go round, and round and round.

These are two investing practices that seek to counter our natural inclination toward market timing by canceling out some of the risk.

Calculate whether the market is paying too much for a particular stock.

By using economic releases in a timely way, buyers can beat the "big players" without endless chart analysis.

Sometimes positive announcements can mean bad news for a stock. Find out why.

Learn how to think big by investing in smaller stocks.

Just like private investors, analysts are sometimes guilty of following the herd and failing to think independently.

Social impact bonds are powerful investment vehicles for the solving of social issues in a sustainable fashion.

Here are 10 financial services books that are informative and useful.

The buy-and-hold investment strategy requires investors to disregard their emotional responses to market movements.

More common risk theories can lead to missed opportunities. Find out how margin of safety can propel your portfolio.

Discover a few of the most popular probability distributions and how to calculate them.

Over the last 26 Summer Olympics, the average rate of return of the DJIA during the games was an impressive 4%.

Beta says something about price risk, but how much does it say about fundamental risk factors? Find out here.

Companies don't elect to leave an exchange so much as they're asked. Find out why.

Understanding how money is made and lost over time can help you improve your returns.

Your golden years are meant to be stress free. Keep them that way by protecting your assets.

Whether it's fireworks, parades or festivals, Fourth of July celebrations in these states are often big and expensive.

Investing in sectors may trump international investments for providing diversification.

Your financial fate is influenced very substantially by whether your broker or firm is immoral, amoral or moral.

Here's a look at some of the methods the federal government is using to help economic recovery in the U.S.

The market for equities has gone through numerous crises, but when an IPO hits the market, it can create lots of excitement for investors and can generate billions of dollars for the company.

Understanding risk is key to better investing.

Here are some historical examples of companies that tried to do the right thing and failed miserably.

Financial literacy is an important subject to teach kids. It is now being taught in some schools.

The increase in communications technology has companies competing in a global market.

Find out if mutual fund managers can successfully pick stocks or if you're better off with an index fund.

Historically, Ivy League endowments have had a successful investment strategy. Will it work for you?

These statistical measurements highlight how to mitigate risk and increase rewards.

Bonds play an important part in your portfolio as you age; learning about them makes good financial sense.

Think penny stocks will make you rich? If you don't understand the risks, you could end up penniless.

Learn about a study that compares the behaviors of some stockbrokers to that of certifiable psychopaths.

Look for factors that influence supply and demand and you might be able to predict which way housing prices will trend.

LBOs are often presented as predatory by the media, but it really depends on which side of the deal you're on.

Understanding gender differences and how they are changing is fundamental to understanding the investing world.

Learn how to evaluate a company's performance using metrics such as ROE, EPS and P/E ratio.

Credentials like on-the-job experience and licenses can be much more important for some financial careers.

Is your investment management firm GIPS compliant? Learn more here.

Increase your returns by creating the right balance of both these risk measures.

Find out how to adjust your portfolio when the market fluctuates to increase your potential return.

The gaming market has a rich history in America, from lotteries in colonial settlements and card games in old west saloons to today's multibillion-dollar casino industry.

Learn about different investment strategies and how to pick the right one for you.

Learn how the writings of John Burr Williams and Harry Markowitz led to the creation of the investment portfolio.

Get the full story on this asset class before you write it off as too risky.

Discover the methods behind financial forecasts and the risks inherent when we seek to predict the future.

Find out how a cat and a ladybug prove markets are both random and efficient.

Learn about what is being dubbed the low-volatility anomaly, why it exists and what we can learn from it.

How a company pays in a merger or acquisition can reveal a lot about the buyer and seller. We tell you what to look for.

Sometimes the best defense is the lack of offense. Here are the best boring ways to protect your portfolio in volatile markets.

Many investors are tempted to change their portfolio options when the 2012 predictions come out. Should you do the same?

Can you really trust what the financial services industry puts out? We tell about some tricks that hide the truth.

Don't get swindled into buying snake oil from Wall Street. Find out three lies that can lead to losing investments.

Strategic acquisition is becoming a part of doing business. Discover the different types of investor groups involved.

We give you four equations to help figure out the yields on your investments.

The Options Industry Council is an educational organization for options traders. We introduce you to the Council and the online tools available.

There are alternatives to national currencies. Discover complementary currencies and how they work.

Without this risk-reduction technique, your chance of loss will be unnecessarily high.

These fallacies have hounded free market economists since the days of Adam Smith.

A disciplined rebalancing practice can add a lot of value to a long-term strategic asset allocation program.

Learn how to figure out how two stocks might move together in the future by calculating covariance.

Insider trading use to be profitable, but can it be today? Learn if investors should be paying attention to insiders.

We look at some past Wall Street protests and explain why Occupy Wall Street is quite different.

Banks are a part of ancient history. Find out how this system of money management developed into what we know today.

What is the difference between a standard of living and quality of life? Find out in this breakdown.

Curious about how emotions and biases affect the market? Find some useful insight here.

These lessons from Icahn, Buffett, Slim and others will help you with your portfolio and trading style.

Socially responsible investing allows you to express your political views in an unlikely way.

Cash flow analysis is a critical process for both companies and investors. Find out what you need to know about it.

Find out how to spot these four biases, and start making more logical investing decisions.

Whether up, down or sideways, learn about some of the factors that drive stock market moves.

How can the presidential election affect your portfolio? Find out here.

Check out the history and inner workings of the world's six most well-known stock exchanges.

Find out how this ratio can help you evaluate companies and make investment decisions.

Speculators often get a bad rap, but it's important to remember that they only observe trends, not manipulate them.

Find out the history of FINRA, and how it's organized to monitor the markets and protect investors.

Before you tackle this challenge, know the challenges of forming and operating an official nonprofit organization.

The Misery Index measures a combination of unemployment and inflation, but what does it mean for your finances?

A high-risk security can reduce risk overall. Find out how it works.

They know more about stocks than the average person, but analysts are still affected by biases. Find out what they are.

Risk is inseparable from return. Learn more about these measures and how to balance them.

Unlike a funded loan, the exposure from a credit derivative is complicated. Find out everything you need to know about counterparty risk.

We take a closer look at the theories that attempt to explain and influence the market.

Genetic algorithms are unique ways to solve complex problems by harnessing the power of nature.

Using this method, investors should be able to focus on a company's advantages and vulnerabilities.

Learn about institutional investing and all of the major players in this field.

Wondering what the odds of a default, recovery or new taxes are? Check out our take.

These decision-making tools play an integral role in corporate finance and economic forecasting.

Know your odds before you put your money on the table.

Like most allegedly sure-fire methods in the investment industry, this one has its flaws too.

Fundamental trends are an important driver of financial markets and every investor and entrepreneur should analyze them.

Private equity investing is becoming more accessible for individual investors; find out how you can get involved.

Learn how to follow the efficient frontier to increase your chances of successful investing.