Volatility refers to the degree of variation or dispersion in a data set, often measured by standard deviation. It shows how much values deviate from the mean over a period. Table of Contents What Is Volatility? Volatility is a statistical measure of the dispersion of returns for a financial asset or market index. It […]
Held-to-maturity (HTM) securities are investments that investor or institution intends to hold until they reach maturity. Table of Contents Held-to-maturity (HTM) securities are a category of investments in debt instruments, such as bonds or treasury notes, that an investor or institution intends to hold until they reach maturity. These securities are reported at their amortized
An asset is something valuable that a person or business owns, which can be used to generate income or provide future benefits. An asset is key in measuring financial health and stability. Table of Contents What Is An Asset? An asset is a resource that is owned or controlled by an individual, corporation, or government
Diversification is a risk management technique that reduces risk by allocating investments across different financial instruments. The ultimate goal of diversification is to reduce the volatility of the portfolio. Table of Contents What Is Diverisification? Diversification is a risk management strategy that creates a mix of various investments within a portfolio. The ultimate goal of diversification is to
Market Capitalization (Market Cap) is the most recent market value of a company’s outstanding shares. The Market Cap is equal to the current share price multiplied by the number of shares outstanding. Table of Contents What Is Market Capitalization? Market cap, short for market capitalization, is the total value of a company’s shares of stock.
Equity, referred to as shareholders’ equity represents the ownership interest held by shareholders in a company. It represents the amount of money that would be returned to a company’s shareholders if all of the assets were liquidated and all of the company’s debt was paid off in the case of liquidation Table of Contents What Is
In finance, risk refers to the degree of uncertainty and/or potential financial loss inherent in an investment decision. Risk is also defined as the volatility of returns Table of Contents What Is Risk? In finance, risk is the probability that actual results will differ from expected results. Risk includes the possibility of losing some or
The Capital Asset Pricing Model (CAPM) is a formula used to estimate the expected return of an investment based on its risk compared to the overall market. It helps investors understand the trade-off between risk and return.
Derivatives are financial instruments whose value is derived from the value of an underlying asset. They are used for various purposes, including speculation, hedging or to shift risk. Table of Contents What Is a Derivative? The term “derivative” refers to a financial contract whose value is determined by on an underlying asset, a group of
An index is a statistical measure that tracks the performance of a group of assets, such as stocks, bonds, or commodities, that represent a particular market or sector. It enables investors to identify market trends and compare performance. Table of Contents What Is An Index? An index is a tool used to measure the performance
