FAQs tagged as

Risk Management

  1. What is the difference between arbitrage and hedging?

  2. How can retirees protect their wealth in a bear market?

  3. When is it beneficial for underwriters to sell stock below the minimum rate?

  4. How do REIT managers use capitalization rate to configure their portfolios?

  5. What are the risks associated with investing in the railroads sector?

  6. What are the risks involved in keeping my money in a money market account?

  7. Under what circumstances is short selling advisable?

  8. What is the downside of investing in the utility sector?

  9. Why is buying a utility stock known as defensive move?

  10. How risky is it to enter into a debenture agreement?

  11. How can a company quickly increase its liquidity ratio?

  12. How should you plan for scarcity when investing?

  13. Is volatility a good thing or a bad thing from the investor's point of view, and ...

  14. What are some possible red flags in a company's dividend payout ratio?

  15. What is the difference between a sharpe ratio and an information ratio?

  16. Is alpha the best risk measure?

  17. What due diligence steps should an investor undertake before each investment?

  18. Why is due diligence important before a company acquisition?

  19. What are historic cases of companies failing to do their due diligence?

  20. What is spread hedging?

  21. Is using the Donchian channel more risky or more conservative than using Bollinger ...

  22. What are the risks associated with investing in telecommunication stocks

  23. What is liquidity risk?

  24. What does the gearing ratio say about risk?

  25. Are Bollinger Bands® useful for analyzing securities with very low volatility?

  26. What is the logic behind using Bollinger Bands® as an indicator of volatility?

  27. What are the best ways to protect trade positions against false signals?

  28. What does a mutual fund's beta coefficient measure?

  29. How can I protect my portfolio from market corrections?

  30. Why do I need to unlever beta when making WACC calculations?

  31. What are the main risks of after-hours trading?

  32. What is the difference between risk tolerance and risk capacity?

  33. Why can't I enter two sell orders on the same stock?

  34. According to the CAPM, the expected return on a stock, that is part of a portfolio, ...

  35. The real rate of return is the amount of interest earned over and above the?

  36. What are the advantages and disadvantages of mutual funds?

  37. When diversifying a bond portfolio, you should make sure to take into account all ...

  38. The interest rate used to define the “risk-free” rate of return is the

  39. Do stocks that trade with a large daily volume generally have less volatility?

  40. What is the difference between systemic risk and systematic risk?

  41. What does "gather in the stops" mean?

  42. What is the difference between investing and speculating?

  43. What is hedging as it relates to forex trading?

  44. Why does a crisis in emerging markets cause U.S. Treasury yields to decrease?

  45. What's the difference between a stop and a limit order?

  46. Can a stop-loss order be used to protect a short sale transaction?

  47. Can you place a stop-loss order on a mutual fund?

  48. How does a stop-loss order work, and what price is used to trigger the order?

  49. What is a GTEM order?

  50. What is a virtual trailing stop order (VTSO)?

  51. What is the ideal number of stocks to have in a portfolio?

  52. What are the components of the risk premium for investments?

  53. Are long-term U.S. government bonds risk-free?

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