Financial Theory

  1. 4 Biases That Can Make You A Bad Investor

    Find out how to spot these four biases, and start making more logical investing decisions. ...
  2. How To Avoid Emotional Investing

    Most investors buy high and sell low, but you can avoid this trap by using some simple ...
  3. The Uptick Rule: Does It Keep Bear Markets Ticking?

    This rule prevents traders from driving stocks down, but its effect on market volatility ...
  4. Behind the Law of Large Numbers in the Insurance ...

    Discover how the law of large numbers helps insurance companies cope with risk, and ...
  5. Some Thoughts on the Gender Gap in Financial ...

    We speak about the impact of the recession on job prospects in the financial services ...
  6. Understanding Investor Behavior

    Discover how some human tendencies can play out in the market, posing the question: ...
  1. Market Value Versus Book Value

    Understanding the difference between book value and market value is a simple yet ...
  2. XLE: Energy Select Sector SPDR ETF

    Find out more about the Energy Select Sector SPDR Fund, the top holdings of this ...
  3. SPY: SPDR S&P 500 Trust ETF

    Find out more about the SPDR S&P 500 ETF Trust, the characteristics of the exchange ...
  4. Analyzing Porter's 5 Forces on Facebook (FB)

    Read about how you can use Porter's five forces to analyze Facebook's competition. ...
  5. You Know Debt & Deficit Are Not The Same, Right?

    An educational article explaining in detail how deficit differs from debt and how ...
  6. ETF Analysis: iPath S&P 500 VIX Futures

    Learn more about the iPath S&P 500 Short-Term Futures Exchange Traded Note, the characteristics ...
  1. Ethical Investing Tutorial

    Learn everything there is to know about ethical investing.
  2. Investing For Safety and Income Tutorial

    Read on for some investment strategies that will allow you to protect your money, ...
  3. Macroeconomics

    Find out everything you need to know about macroeconomics.
  4. Capital Budgeting

    Learn the process through which businesses determine whether projects are worth pursuing. ...
  1. What is the difference between the rule of 70 and the rule of 72?

    Find out more about the rule of 70 and the rule of 72, what the two rules measure and the main difference between them.
  2. What is finance?

    "Finance" is a broad term that describes two related activities: the study of how money is managed and the actual process ...
  3. What is the difference between positive and normative economics?

    Positive economics is objective and fact based, while normative economics is subjective and value based. Positive economic ...
  4. What is the utility function and how is it calculated?

    Learn what the utility function is in microeconomic theory and how it is calculated based on a functional form that represents ...
  1. 8 Simple Investing Ratios You Need To Know

    Investing is a complex and often daunting experience, these equations are actually ...
  2. 5 Reasons For Corporate Thanksgiving

    In the corporate world, several entities have major reasons to be grateful.
  3. 5 Steps Of A Bubble

    Learn about the five typical steps of a bubble: displacement, boom, euphoria, profit ...
  4. 5 Metals That May Be Brighter Than Gold

    Many metals could be better investments than gold because they're more versatile ...
  5. 5 Investing Statements That Make You Sound Stupid

    Sound like a pro by avoiding these five common rookie statements.
  6. Top 7 Biggest Bank Failures

    Many people assumed these giants were too big to fall - they were wrong.
Hot Definitions
  1. Foreign Exchange Reserves

    Foreign exchange reserves are reserve assets held by a central bank in foreign currencies, used to back liabilities on their ...
  2. North American Free Trade Agreement - NAFTA

    A regulation implemented on Jan. 1, 1994, that decreased and eventually eliminated tariffs to encourage economic activity ...
  3. Trickle-Down Theory

    An economic idea which states that decreasing marginal and capital gains tax rates - especially for corporations, investors ...
  4. Derivative

    A security with a price that is dependent upon or derived from one or more underlying assets.
  5. Fiduciary

    A fiduciary is a person who acts on behalf of another person, or persons to manage assets.
  6. Sharpe Ratio

    The Sharpe Ratio is a measure for calculating risk-adjusted return, and this ratio has become the industry standard for such ...
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