Volatility: Meaning in Finance and How It Works With Stocks
Volatility refers to the degree of variation or dispersion in a data set, often measured by standard deviation. It shows […]
Glossary
Glossary
Glossary, Word of The Day
Held-to-Maturity (HTM) Securities: How They Work and Examples
Held-to-maturity (HTM) securities are investments that investor or institution intends to hold until they reach maturity. Table of Contents Held-to-maturity
Glossary
What Is an Asset? Definition, Types, and Examples
An asset is something valuable that a person or business owns, which can be used to generate income or provide
Glossary
What Is Diversification? Why Is It Important
Diversification is a risk management technique that reduces risk by allocating investments across different financial instruments. The ultimate goal of diversification
Glossary, Word of The Day
Market Capitalization: What It Is & What It Means for Investors
Market Capitalization (Market Cap) is the most recent market value of a company’s outstanding shares. The Market Cap is equal
Glossary
Equity Meaning: How It Works and How to Calculate it
Equity, referred to as shareholders’ equity represents the ownership interest held by shareholders in a company. It represents the amount of
Glossary, Word of The Day
What Is Risk? Detailed Explanation With Example
In finance, risk refers to the degree of uncertainty and/or potential financial loss inherent in an investment decision. Risk is
Glossary
Capital Asset Pricing Model (CAPM): Explained
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.
Glossary, Word of The Day
Derivatives: Types, Uses and Examples
Derivatives are financial instruments whose value is derived from the value of an underlying asset. They are used for various
Glossary
What Is An Index? How It’s Used, Examples
An index is a statistical measure that tracks the performance of a group of assets, such as stocks, bonds, or