Financial Theory Articles

Find out which companies have come together lately and why.

Volatility is not the only way to measure risk. Learn about the "new science of risk management".

Volatility is not the only way to measure risk. Learn about the "new science of risk management".

Find out how these five groundbreaking thinkers laid our financial foundations.

Buying at the right price determines profit, but selling at the right price locks it in.

Democratic stalwart tells Wall Street crowd to accept financial reform.

The U.S. deficit seems to grow every year. But how does it actually affect you?

Take a look at the tenets, assumptions and challenges of monetarism's principal theory.

The futures market is a lot less scary when these indicators are used to establish current trends.

Learn how the expected extra return on stocks is measured and why academic studies usually estimate a low premium.

This measure has its benefits, but it can also present earnings through rose-colored glasses.

We test the theory that lipstick sales thrive during an economic downturn.

Chances are you've heard of the IMF. But what does it do, and why is it so controversial?

Diversification and rebalancing are keys to long-term returns.

Even natural disasters that take place thousands of miles away can shake up your portfolio here at home.

Rebalancing your portfolio will protect you from risk and ensure that your investments are performing at their best.

If you think holding several stocks means you're diversified, think again - there's much more to be done to reduce portfolio risk.

Not all nations measure their success in dollars and material items - Bhutan, south of China, measures it in happiness.

If you can't predict the future, you'll need to plan ahead to protect your assets from the impact of major world events.

Manufacturing output is one of the clearest signs that an economy is recovering from a recession.

High debt, bad policy bode ill for stocks.

From the millionaire boom and the IPO of one of the world's largest companies, read on to find out what significant financial events of the past occurred during this week.

This idea has been debated for decades, but could it really work? Which countries would benefit? What are the downfalls? How would supply and printing factor in?

GDP is used to gauge the strength of the economy, but what is it actually measuring?

We provide some classic and lesser-known titles to add to your collection.

Social networks have become popular job-seeking resources. Find out how to use them to your advantage.

GDP growth is not necessarily a solid indicator of stock market returns in emerging markets. Find out what to watch instead.

Though he's an investing icon, critics are pointing to several past events that signal Buffett's reign may be ending.

Seven words that are music to investors' ears? "The dividend check is in the mail."

We may never come to a consensus on what caused the financial collapse, but derivatives definitely share a large part of the blame.

Find out whether this superstitious belief is worth following or little more than water cooler chatter.

This simple example shows how central banks expand the money supply, and why the money supply must grow for the GDP to grow.

Yes, it is possible to consistently beat the stock market.

This interest rate forecasting model has helped central banks around the world adjust their rates to balance out inflation.

The Russell Investments and MSCI Barra style classification systems can help you pick the right mutual fund - if you know how they work.

Find out how the amateur investor can measure the success of management.

If you want to find out which analysts are worth following, you shouldn't take their word for it.

Do-it-yourself trading can be very rewarding - both psychologically and for your wallet.

Use this modification of an iron condor to reduce risk and increase your chance at profiting on the trade.

At first glance, this product looks like the answer to investors' prayers. In reality, it's just too good to be true.

See why investors today still follow this old set of principles that reduce risk and increase returns through diversification.

Find out how to forecast long-term returns on the three major asset classes.

Some countries have begun charging a flat tax rate instead of the gradual tax system of the Western world.

After World War II, Germany was in ruins. Learn about the country's quick rise to the third strongest economy in the world.

Inflation is often a consequence of economic recovery. Here's how you can protect your financial portfolio.

Minimizing risk while maximizing return is any investor's prime goal. The right mix of securities is the key to achieving it.

Surprisingly, not all of these books are about the recession. But they are all worth the read.

Most moms and dads make this tough decision based on emotion, but there are quite a few financial consequences to each choice, too.

There are a lot of risks associated with running a business, but there are an equal number of ways to prepare for and manage them.

Learn how to analyze earnings sustainability - an important part of making sound investments.

The Federal Reserve needs its power in order to make the tough decisions that politicians can't.

These bankers shaped the current financial system - though some didn't live to see the fruits of their labor.

We take a look at some of the most quoted recession statistics, and find out how they're calculated and who they affect.

Buying at the right time is crucial, but how do we know when that is?

A decade before Mastercard or Visa existed, the first credit card company was introduced.

Structured financial products are so elaborate that investors are unable to assess costs and risk.

There's a lot to learn from Anthony Bolton, who is known as Europe's Peter Lynch.

We can learn a lot from Kostolany and his "steady or shaky hand" investing philosophy.

Gates, Soros, Icahn, Rockefeller and Morgan caused chills on Wall Street.

In the finance world, October is a month to be feared, but is it justified?

Risk aversion seems to come to us naturally, preventing us from stepping into unfamiliar territory. But feeling comfortable isn't always the best thing for your portfolio.

Cash in the bank is what every company strives to achieve. Find out how to determine how much a company is generating and keeping.

People often compare stocks to gambling, but how close are they really?

It's a big mistake for a fundamental investor to ignore technical analysis. Find out how to become chart smart.

Find out how former Iron Curtain countries used private enterprise to join the world financial markets.

Don't let "financial porn" steer you away from a sensible, long-term approach to investing.

Just because you're on a winning streak, doesn't mean you're a skilled trader. Find out why.

As proponent of free market capitalism, this economist changed the way the world's economies operate.

Recent mergers by big players show economic optimism.

Ditch your financial calculator and use these handy tips for estimating complex financial calculations on the fly.

The efficient market hypothesis (EMH) suggests that stock prices fully reflect all available information in the market. Is this possible?

Harry Browne believes his "permanent portfolio" theory is the ideal long-term investing strategy.

Comparing stock and bond prices, it's clear that the market is ready for a major pullback.

At times of market stress, investors flee from risky assets to investments the safest ones available.

Avoid unnecesary risks involved in CAPM calculations by also incorporating ICAPM into the mix.

Submission for August 28

Being able to accurately spot the beginning of a bull market can be one of the most lucrative skills around.

Do you understand how the various types of shares differ? We give you the pros and cons of each.

Borrowing to increase profits isn't for the faint of heart, but margin trading can mean big returns.

After the infamous collapse of companies like Tyco, Enron and WorldCom, the government responded to try and prevent it from happening again.

Immigration can be a touchy subject, but here's the economic point of view.

Contrarian investors find value in the worst market conditions. Find out how they do it.

This method can help refine probability estimates using an intuitive process.

In weaker economic times, banks may be tested by the government to see how safe they are.

Understanding your risk tolerance level can save you a lot of grief and financial instability in the future.

These investments may pose a greater risk, but for brave investors, they're worth the stress.

Learn how a country's current account balance reflects the country's economic health.

With regulatory oversight under fire, the smart money might place an inverse bet on the future of these products.

An increase in interest rates could prove that that the Fed really believes the U.S. economy is starting to grow.

Find out the truth about recessions and how they impact your portfolio.

It was the largest takeover in history and one of the most dramatic. Learn all about the fate of Getty Oil.

Are you a bull or a bear? Here are the top five arguments for each side.

Although the DJIA only includes 30 stocks, it can tell you a lot about the market as a whole.

Indexes are a hands-off way for investors to access the markets, but in some cases, nothing beats active investing.

This Ponzi scammer's professed strategy has been vilified, but it actually works.

In an economy rocked by the latest recession, is buy and hold investing still the best strategy?

You may be paying less at the pump, but how are lower oil prices affecting other parts of the economy?