Sovereign wealth funds (SWFs) typically invest in diverse assets to achieve long-term returns, manage risk, and meet economic objectives. The asset allocation often depends on the fund's mandate, risk tolerance, and the economic priorities of the...
Growth in the economy is defined as an increase in the value of a country's goods and services, leading to increased profits for companies. As a result, stock prices rise.As a result, businesses can invest and hire more workers..
Penny stocks are low-priced, small-cap securities, typically trading for less than $5 per share. They are often issued by small or emerging companies and are considered high-risk investments due to limited liquidity, lack of transparency, and...
Boiler room schemes are notorious for employing high-pressure sales tactics as a core strategy to exploit potential victims. These schemes typically involve aggressive, unsolicited phone calls or online interactions where sales agents, often in a...
In options trading, intrinsic value is the difference between the price of the underlying asset and the strike price of the option. The method used to calculate intrinsic value varies depending on the type of option purchased - in call options, it is...
The cost of carry plays a crucial role in identifying and exploiting arbitrage opportunities in financial markets. It represents the total expenses incurred to hold an asset over time, including interest rates, storage costs, insurance, and...
A mid-cap stock refers to a publicly traded company with a market capitalization generally between $2 billion and $10 billion. Market capitalization, or market cap, is calculated by multiplying a company’s current stock price by its total number of...
An annuity is a financial product that provides a regular income stream to the annuitant over a specific period or for the rest of their life. An annuity can be purchased from an insurance company, and the annuitant makes a lump sum payment or a...
Capital gains tax applies to the profit from selling or disposing of certain assets. Common assets subject to this tax include stocks, bonds, mutual funds, real estate, and collectables such as art, antiques, and precious metals. Cryptocurrencies are...