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Understanding the Binomial Option Pricing Model
Learn about the binomial option pricing models with detailed examples and calculations. The binomial option pricing model offers a unique alternative to Black-Scholes.
What the Dow Means and How It Is Calculated
Investors refer to the Dow index daily, but do you actually know why we use that number? Investors and traders also need information about overall market sentiment and so, many will follow the Dow. Learn how the Dow is calculated and what it can mean to investors.
Enterprise Value – EV Definition
Enterprise value (EV) is a measure of a company's total value, often used as a comprehensive alternative to equity market capitalization. EV includes in its calculation the market capitalization of a company but also short-term and long-term debt as well as any cash on the company's balance sheet.
How to Calculate Fair Value in Futures Markets
Learn how the fair value for futures stock index contracts is calculated, and understand how differences between those numbers are a chance for arbitrage.
Market momentum is a measure of overall market sentiment that can support buying and selling with and against market trends.
Learn the Lingo of Private Equity Investing
The non-public nature of private equity investing can make the lingo tough to learn. Private equity was once a realm that only sophisticated investors could access. Now, mainstream investors are venturing into this investing world.
Wealthfront vs. E*TRADE Core Portfolios: Which Is Right for You?
Wealthfront was created as a robo-advisor and has evolved with the industry. E*TRADE Core Portfolios, on the other hand, is one of many options that clients of the online discount brokerage have to choose from.
Merton Model Definition
The Merton model is an analysis tool used to evaluate the credit risk of a corporation's debt. Analysts and investors utilize the Merton model to understand the financial capability of a company.
How Game Theory Strategy Improves Decision Making
Game theory, the study of strategic decision making can be used in many fields, including business, finance, and economics to improve decision making.