Financial Theory Articles

  1. DCF Valuation: The Stock Market Sanity Check

    Calculate whether the market is paying too much for a particular stock.
  2. Fundamental Speed: The "Duck-And-Jab" Approach To Forex

    By using economic releases in a timely way, buyers can beat the "big players" without endless chart analysis.
  3. How To Evaluate A Micro-Cap Company

    Learn how to think big by investing in smaller stocks.
  4. Understanding Social Impact Bonds

    Social impact bonds are powerful investment vehicles for the solving of social issues in a sustainable fashion.
  5. Equity Investing For The Buy-And-Holder

    The buy-and-hold investment strategy requires investors to disregard their emotional responses to market movements.
  6. Find The Right Fit With Probability Distributions

    Discover a few of the most popular probability distributions and how to calculate them.
  7. The Stock Market Loves The Olympics

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

    Companies don't elect to leave an exchange so much as they're asked. Find out why.
  9. Overcoming Compounding's Dark Side

    Understanding how money is made and lost over time can help you improve your returns.
  10. States That Spend A Lot On Fourth Of July Celebrations

    Whether it's fireworks, parades or festivals, Fourth of July celebrations in these states are often big and expensive.
  11. Shifting Focus To Sector Allocation

    Investing in sectors may trump international investments for providing diversification.
  12. What The U.S. Needs To Do To Avoid Austerity Measures

    Here's a look at some of the methods the federal government is using to help economic recovery in the U.S.
  13. The 5 Best And Worst IPOs

    The market for equities has gone through numerous crises, but when an IPO hits the market, it can create lots of excitement ...
  14. Low Vs. High-Risk Investments For Beginners

    Understanding risk is key to better investing.
  15. 8 Good Intentions With Bad Outcomes

    Here are some historical examples of companies that tried to do the right thing and failed miserably.
  16. Teaching Kids About Financial Literacy

    Financial literacy is an important subject to teach kids. It is now being taught in some schools.
  17. Is Stock Picking A Myth?

    Find out if mutual fund managers can successfully pick stocks or if you're better off with an index fund.
  18. How To Invest Like An Endowment

    Historically, Ivy League endowments have had a successful investment strategy. Will it work for you?
  19. 5 Ways To Measure Mutual Fund Risk

    These statistical measurements highlight how to mitigate risk and increase rewards.
  20. The Basics Of Bonds

    Bonds play an important part in your portfolio as you age; learning about them makes good financial sense.
  21. The Lowdown On Penny Stocks

    Think penny stocks will make you rich? If you don't understand the risks, you could end up penniless.
  22. Psychopaths In The Trading Room

    Learn about a study that compares the behaviors of some stockbrokers to that of certifiable psychopaths.
  23. Why U.S. Home Prices Rely On Supply And Demand

    Look for factors that influence supply and demand and you might be able to predict which way housing prices will trend.
  24. 5 Stock Market Metrics Explained

    Learn how to evaluate a company's performance using metrics such as ROE, EPS and P/E ratio.
  25. Financial Careers Without A College Degree

    Credentials like on-the-job experience and licenses can be much more important for some financial careers.
  26. A Guide To Global Investment Performance Standards

    Is your investment management firm GIPS compliant? Learn more here.
  27. Bettering Your Portfolio With Alpha And Beta

    Increase your returns by creating the right balance of both these risk measures.
  28. Volatility's Impact On Market Returns

    Find out how to adjust your portfolio when the market fluctuates to increase your potential return.
  29. The Evolution Of The Gaming Market

    The gaming market has a rich history in America, from lotteries in colonial settlements and card games in old west saloons ...
  30. The Key To High Returns Is A Disciplined Strategy

    Learn about different investment strategies and how to pick the right one for you.
  31. The History Of The Modern Portfolio

    Learn how the writings of John Burr Williams and Harry Markowitz led to the creation of the investment portfolio.
  32. An Evaluation Of Emerging Markets

    Get the full story on this asset class before you write it off as too risky.
  33. The Basics Of Business Forecasting

    Discover the methods behind financial forecasts and the risks inherent when we seek to predict the future.
  34. Viewing The Market As Organized Chaos

    Find out how a cat and a ladybug prove markets are both random and efficient.
  35. What Investors Can Learn From M&A Payment Methods

    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. ...
  36. 5 Ways To Protect Your Portfolio From Volatility

    Sometimes the best defense is the lack of offense. Here are the best boring ways to protect your portfolio in volatile markets. ...
  37. Strategies For Making Sense Of The 2012 Forecasts

    Many investors are tempted to change their portfolio options when the 2012 predictions come out. Should you do the same? ...
  38. Key Players In Mergers And Acquisitions

    Strategic acquisition is becoming a part of doing business. Discover the different types of investor groups involved.
  39. 4 Types Of Money Market Yields

    We give you four equations to help figure out the yields on your investments.
  40. An Introduction To The Options Industry Council

    The Options Industry Council is an educational organization for options traders. We introduce you to the Council and the ...
  41. An Introduction To Complementary Currencies

    There are alternatives to national currencies. Discover complementary currencies and how they work.
  42. The Importance Of Diversification

    Without this risk-reduction technique, your chance of loss will be unnecessarily high.
  43. 4 Misconceptions About Free Markets

    These fallacies have hounded free market economists since the days of Adam Smith.
  44. The Role Of Rebalancing

    A disciplined rebalancing practice can add a lot of value to a long-term strategic asset allocation program.
  45. 4 Other Wall Street Protests You've Never Heard Of

    We look at some past Wall Street protests and explain why Occupy Wall Street is quite different.
  46. Standard Of Living Vs. Quality Of Life

    What is the difference between a standard of living and quality of life? Find out in this breakdown.
  47. An Introduction To Behavioral Finance

    Curious about how emotions and biases affect the market? Find some useful insight here.
  48. 6 Rules From 6 Of The World's Top Investors

    These lessons from Icahn, Buffett, Slim and others will help you with your portfolio and trading style.
  49. Change The World One Investment At A Time

    Socially responsible investing allows you to express your political views in an unlikely way.
  50. Cash Flow From Investing

    Cash flow analysis is a critical process for both companies and investors. Find out what you need to know about it.
  51. 4 Biases That Can Make You A Bad Investor

    Find out how to spot these four biases, and start making more logical investing decisions.
  52. The Market And Presidential Promises

    How can the presidential election affect your portfolio? Find out here.
  53. Stock Exchanges: A Global Tour

    Check out the history and inner workings of the world's six most well-known stock exchanges.
  54. Analyzing The Price-To-Cash-Flow Ratio

    Find out how this ratio can help you evaluate companies and make investment decisions.
  55. Market Speculators: More Help Than Harm

    Speculators often get a bad rap, but it's important to remember that they only observe trends, not manipulate them.
  56. FINRA: How It Protects Investors

    Find out the history of FINRA, and how it's organized to monitor the markets and protect investors.
  57. 5 Steps To Forming A Tax-Exempt Nonprofit Corporation

    Before you tackle this challenge, know the challenges of forming and operating an official nonprofit organization.
  58. The Misery Index: Measuring Your Misfortune

    The Misery Index measures a combination of unemployment and inflation, but what does it mean for your finances?
  59. Make Your Portfolio Safer With Risky Investments

    A high-risk security can reduce risk overall. Find out how it works.
  60. The Viability Of Tracking Insiders

    Insider trading use to be profitable, but can it be today? Learn if investors should be paying attention to insiders.
  61. Measuring And Managing Investment Risk

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

    Unlike a funded loan, the exposure from a credit derivative is complicated. Find out everything you need to know about counterparty ...
  63. Using Genetic Algorithms To Forecast Financial Markets

    Genetic algorithms are unique ways to solve complex problems by harnessing the power of nature.
  64. Evaluate Your Investments With SWOT Analysis

    Using this method, investors should be able to focus on a company's advantages and vulnerabilities.
  65. Betting On The Economy: What Are The Odds?

    Wondering what the odds of a default, recovery or new taxes are? Check out our take.
  66. Using Decision Trees In Finance

    These decision-making tools play an integral role in corporate finance and economic forecasting.
  67. Using Logic To Examine Risk

    Know your odds before you put your money on the table.
  68. The Flaws Of Using Mass Sentiment To Be Contrarian

    Like most allegedly sure-fire methods in the investment industry, this one has its flaws too.
  69. Profit By Understanding Fundamental Trends

    Fundamental trends are an important driver of financial markets and every investor and entrepreneur should analyze them. ...
  70. Find The Highest Returns With The Sharpe Ratio

    Learn how to follow the efficient frontier to increase your chances of successful investing.
  71. Owners Can Be Deal Killers In M&A

    A merger and acquisition advisor is often the best choice when selling a company.
  72. Do Small Investors Move The Market?

    As trading technology improves access, individual investors may have more of a say in the direction of the market.
  73. Diversification: It's All About (Asset) Class

    Frustrated stock pickers rejoice - asset class selection is simpler and safer.
  74. What Is Warren Buffett's Investing Style?

    Learn the main principles that Warren Buffet uses in assessing a company. His take on value investing may surprise you.
  75. Hamburger Economics: The Big Mac Index

    In theory, PPP stands up much better than it does in reality. Find out how to evaluate currencies according to the price ...
  76. 5 Economic Concepts Consumers Need To Know

    A solid understanding of economics helps build a strong foundation in almost every area of life.
  77. The S&P Downgrade: What Does It Mean?

    Standard & Poor's downgraded the outlook on U.S. Treasuries from "stable" to "negative." We'll look at what this means ...
  78. 7 Facts You Didn't Know About The Greenback

    There's more to that $10 bill in your pocket than you think - read on for some interesting facts about U.S. currency.
  79. Information Overload: How It Hurts Investors

    There's a fine line between staying informed and being overloaded with financial information.
  80. What It Really Takes To Succeed In Business

    It takes a lot more than an Ivy League education to become a CEO.
  81. The Difference Between Finance And Economics

    Learn the differences between these closely related disciplines and how they inform and influence each other.
  82. Do Mergers Save Or Cost Consumers Money?

    A merger or acquisition can actually be beneficial to the customer - find out how, in this article.
  83. How Stock Market Indexes Changed Investing

    Find out how the first market averages were calculated and what they mean for investors today.
  84. The Economics Of A Successful Marriage

    These theories can keep multi-million dollar corporations afloat, so they should be able to increase the odds of wedded bliss. ...
  85. Top 4 Signs Of Over-Diversification

    Learn how to spot over-diversification in your portfolio and find out why some financial advisors are motivated to do it. ...
  86. Demographic Trends And The Implications For Investment

    See how people's movements, ages, deaths and buying patterns affect portfolios worldwide.
  87. Gold Or Oil: Which Is The Hotter Investment?

    Investing in gold and oil is now easy and cheap for investors, but not without risk.
  88. Using Porter's 5 Forces To Analyze Stocks

    These five qualitative measures allow investors to draw conclusions about a corporation that are not apparent on the balance ...
  89. The Dangers Of Deflation

    We look at what life would be like in a deflationary environment, and what you can do to protect your investments.
  90. An Introduction To Hyperinflation

    Hyperinflation isn't some historical curiosity. It is a very real risk that countries and governments still struggle with ...
  91. Option Price-Volatility Relationship: Avoiding Negative Surprises

    Learn about the price-volatility dynamic and its dual effect on option positions.
  92. David Sokol: Buffett's Former Right-Hand Man

    Sokol contrasts sharply with Buffett's management style, but he can help Berkshire thrive once Buffett decides to move on. ...
  93. How The Loch Ness Monster Affects The Economy

    Do sightings of Bigfoot, Nessie and UFOs lead to massive market fluctuations?
  94. How To Calculate Required Rate Of Return

    The required rate of return is used by investors and corporations to evaluate investments. Find out how to calculate it. ...
  95. Dynamic Current Ratio: What It Is And How To Use It

    Learn why this ratio may be a good alternative to the current, cash and quick ratios.
  96. Why Stocks Outperform Bonds

    Why have stocks historically produced higher returns than bonds? It's all a matter of risk.
  97. What Investors Should Know About Interest Rates

    Understanding interest rates helps you answer the fundamental question of where to put your money.
  98. Time Value Of Money: Determining Your Future Worth

    Determining monthly contributions to college funds, retirement plans or savings is easy with this calculation.
  99. Using Technical Indicators To Develop Trading Strategies

    Unfortunately, there is no perfect investment strategy that will guarantee success, but you can find the indicators and strategies ...
  100. Strategies For Determining The Market's True Worth

    Learn the strengths and weaknesses of passive and active management when trying to uncover the overall market's worth.
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