1. Investing

    What is the Pac-Man defense?

    The Pac-Man defense is a strategy in which a company that is facing a hostile takeover from another company essentially turns the tables and attempts to purchase the would-be buyer. The defensive strategy ...
  2. Options & Futures

    What are the differences between AMEX and Nasdaq?

    While similar in purpose, the American Stock Exchange (AMEX) and the National Association of Securities Dealers Automated Quotations (Nasdaq) are also unique from one another. The AMEX is the third-largest ...
  3. Forex Education

    Accounting Basics

    What is accounting? Learn the basics of this essential way of recording and summarizing financial information.
  4. Trading Strategies

    How do I employ a cash-and-carry trade?

    The cash-and-carry trade is an arbitrage strategy of purchasing one security while simultaneously selling a similar security. This trade is typically employed by taking a long and short position strategy, ...
  5. Options & Futures

    Peer-To-Peer Lending Breaks Down Financial Borders

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

    What was the Whitewater scandal?

    The Whitewater scandal refers to a real estate controversy involving former President Bill Clinton and his wife Hillary. In 1978, when Bill Clinton was attorney general of Arkansas, he and his wife partnered ...
  7. Retirement

    What is a blackout period?

    A blackout period is a period of at least three consecutive business days but not more than 60 days during which the majority of employees at a particular company are not allowed to make alterations to ...
  8. Investing

    What is the relationship between the PPI and the CPI?

    First, let's take a look at what these two acronyms mean: the PPI is the producer price index and the CPI is the consumer price index. Both indexes calculate the change in price of a set of goods and services, ...
  9. Options & Futures

    How do I use a "basket" option?

    A basket option is an option with an underlying asset "basket" of securities, currencies or commodities. Basket options are a popular way to hedge portfolio risk. Meanwhile, using the basket option costs ...
  10. Investing

    What is the chaos theory?

    The chaos theory is a complicated and disputed mathematical theory that seeks to explain the effect of seemingly insignificant factors. The chaos theory name originates from the idea that the theory can ...
  11. Investing

    How do investors "chase the market"? It this a bad thing?

    Generally, an investor "chases the market" when he or she enters into a highly priced position after the stock price has increased rapidly or become overpriced. An investor who exits a position after the ...
  12. Investing

    How do companies use the Pac-Man defense?

    To employ the Pac-Man defense, a company will scare off another company that had tried to acquire it by purchasing large amounts of the acquiring company's stock. By doing so, the defending company signals ...
  13. Investing

    How is something "brought over the wall" in an investment ...

    An analyst who lends his or her expertise to an underwriting department is said to have been "brought over the wall". In financial firms, the separation between the investment analyst and the underwriting ...
  14. Investing

    What are the "big uglies"?

    The big uglies are stocks that the investing public does not find attractive. Industrial companies like steel, mining and oil are considered big uglies because investors favor the more contemporary investment ...