Financial Theory Articles

Studies show that transparency and listening to the market are a winning combination for CEOs and the companies they run.

This emerging market is making strides in regulation and disclosure.

Physics uses math to define the laws of the universe; here, we look at what laws explain the financial universe.

These essential tips will get you through the earnings season.

These fraudsters were the first to commit fraud, participate in insider trading and manipulate stock.

Your house depreciates over time, while the land beneath it is likely to do the opposite.

There are many ways to hit the million-dollar mark, but the faster you try to get there, the harder it becomes.

Hyperinflation can make a $1,000 bill look like chump change.

In the wake accounting scandals, more people are calling for full disclosure. But what would that even help?

Playing follow-the-leader in investing can quickly become a dangerous game. Learn how to invest independently and still come out on top.

The iPhone becomes a reality.

Here we look at some of the landmark incidents of insider trading.

Are the markets random or cyclical? It depends on who you ask. Here, we go over both sides of the argument.

News agencies and financial journalists aren't actually analysts, so don't believe everything you read.

Don't put all your eggs in one basket" is still a sound piece of investment advice - if you understand what it means.

Put down those brokerage statements and pick up a Nintendo Wii handset.

Though the U.S. government can help its citizens by subsidizing risky loans, the costs always come back to the taxpayers.

Though not as well-remembered as some of his contemporaries, Andrew Carnegie's legacy is strong and moralistic.

Though naked short selling is illegal, it's barely enforced, but that might be changing.

The Glass-Steagall Act of 1933 would reform the banking indusry, and attempt to protect the average investor.

The next time portfolio losses have you down, just be glad that you can blame some of your woes on the market, rather than your own poor judgment.

The downgrade in debt rating might be a good way to keep countries' spending in check.

On this day in 1947, the association of investment professionals was formed.

It's hard to keep your emotions in check while you play the stock market, but it will help you make better decisions in the long run.

Though it may be a renewable resource, there are some downsides to ethanol.

Troubled economic times, loss of trust in financial institutions, high unemployment, and the need to stimulate the economy, sound familiar?

Some argue that when the free market fails to protect consumers, government regulation is required.

By making these small changes in your life, you can feel better about your financial situation no matter what the economy does.

Learn how global warming is starting to heat up America's corporate climate.

Your mood, and the mood of each of the participants in the economy, has a huge impact on the market. See how consumer sentiment plays a huge role in the strength of the economy.

Take your game theory knowledge to the next level by learning about simultaneous games and the Nash Equilibrium.

There is no division between the spiritual and the secular in this type of socially responsible investing.

This rule was deemed ineffective and repealed in 2007, but critics argue it protects the market from bear raids.

Banks are no longer the only option for a loan - the P2P lending system operates without them.

When banks and advisors focus on fees and commissions, it is investors and the market that take the hit.

This investing strategy retains its charm as a protection against random events in the market.

This rule prevents traders from driving stocks down, but its effect on market volatility is debatable.

Learn how this phenomenon can cause a party in an agreement to behave differently than expected.

Investing today couldn't happen without the inventions of yesterday. Learn more here.

This decision-making tool integrates the idea that every decision has an impact on overall risk.

Find out how this invention contributed to the development and evolution of the U.S. economy.

Learn how a deadly mix of greed and leverage cost investors millions.

Would a similar crisis have occurred if iPhone investors were offered the same loan options as homeowners?

Discover how technology changed the way we exchange information when trading.

The Jensen index helps investors compare realized returns to what should've been achieved.

Problems with the original accord became evident during the subprime crisis in 2007.

Find out if taking the path less traveled will work in your favor - or against it.

Buying value stocks that are moving higher helps investors steer clear of value traps.

Not sure where oil prices are headed? This theory provides some insight.

Did this accounting convention contribute to the credit crisis of 2008? Find out here.

This statistical method estimates how far a stock might fall in a worst-case scenario.

You can't win if you don't keep score. Read on to learn how to measure your returns.

Learn to predict future events through a series of random trials.

What to know about stationary and non-stationary processes before you try to model or forecast.

Find out how Yasuo Hamanaka's actions in the copper market forever changed the rules for commodity traders.

Do you know why companies merge? Here we'll take a look at three successful company acquisitions and why they succeeded.

Before you try to profit from their theories, you should learn about the creators themselves.

Find out which companies collapsed after merging.

These tales of banking terror sent shivers down the spines of even the most steadfast bankers.

Corporate lobbyists have the power, influence and political backing to affect your portfolio. Find out how.

Find out how he went from selling soft drinks to buying up companies and making billions of dollars.

Sustainability and reducing environmental impact are hot corporate objectives. Find out why.

Pundits often advise buying after the Fed cuts interest rates, but this advice could cost you.

This funding is one of the forces that drives capital market valuations.

Find out how this approach reduces risk and costs so you can maximize your portfolio return.

Find out how to carve your way into this valuation model niche.

Learn how to calculate a metric that improves on simple variance.

Copying the portfolios of big-time investors is unlikely to yield comparable returns.

This 1988 agreement sought to decrease the potential for bankruptcy among major international banks.

Break down and examine the potential consequences of economic/financial scenarios.

Don't let corporations greenwash their dirty laundry. Learn how to spot a phony.

The key to survival for many financial institutions will be to efficiently serve a global customer base.

After the crash of 1929, this barrier helped define ethical limits, but it did little to prevent fraud.

Jim Cramer's spirited recommendations are a case study in irrational market behavior.

Learn about the Wall Street scandals Eliot Spitzer prosecuted before perpetrating his own.

This rate is rarely questioned - unless the economy falls into disarray.