Tag: securities

Investment Banks

Investment Banks Investment banks are banks that offer expert financial services. The services include the following: Underwriting initial public offerings Issuing securities to raise capital Evaluating financing alternatives Handling mergers and acquisitions Other activities related to finances and securities They also serve as financial intermediaries between companies issuing securities and the investing public that purchases

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Fixed Income Securities

See Also: Long Term Debt Maturity Date Non-Investment Grade Bonds Owner’s Equity Par Value of a Bond Preferred Stocks Core Satellite Portfolio Fixed Income Securities Definition What are fixed income investments? Fixed income securities are financial instruments that represent debt obligations. A company, government, or other organization can raise funds by issuing debt instruments to

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Financial Instruments

See Also: What is a Bond Required Rate of Return Return on Asset Commercial Paper Hedging Risk Histogram Financial Instruments and Securities Financial instruments are contracts that represent value. They come in many varieties. In fact, financial managers and bankers have a lot of leeway in creating and issuing financial instruments. The Securities and Exchange

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Exchange Traded Funds

See Also: Currency Exchange Rates Currency Swap Transaction Exposure Hedging Risk Hedge Funds Exchange Traded Funds (EFTs) What are exchange traded funds? What are EFTs? Exchange traded funds, or ETFs, are securities that resemble mutual funds but trade like stocks. Essentially, an exchange-traded fund is a portfolio of securities that trades like a single security.

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Efficient Market Theory

See Also: Economic Indicators Economic Value Added Supply and Demand Elasticity Business Cycle Porters Five Forces of Competition Efficient Market Theory Efficient market theory hypothesis proposes that financial markets incorporate and reflect all known relevant information. The validity of efficient market hypothesis is debated; however, whether or not efficient market hypothesis is valid, it is useful

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Australian Securities Exchange (ASX)

Australian Securities Exchange (ASX) Definition In 1861, the Australian Securities Exchange or the ASX was established. Furthermore, it’s current form is the result of a merger between the Australian Stock Exchange and the Sydney Futures Exchange in 2006. Currently, the ASX exchange is the 9th largest stock exchange in the world in terms of both

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Arbitrage Pricing Theory

See Also: Cost of Capital Cost of Capital Funding Capital Asset Pricing Model APV Valuation Capital Budgeting Methods Discount Rates NPV Required Rate of Return Arbitrage Pricing Theory Definition The arbitrage pricing theory (APT) is a multifactor mathematical model used to describe the relation between the risk and expected return of securities in financial markets. It computes

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Bottom Up Approach

See Also: Top Down Approach How to Prepare an Investor Package Fixed Income Securities Common Stock Definition Finance Beta Definition Bottom Up Approach Definition The bottom up approach definition is when the investing involves picking out certain securities based on how the security is priced. Bottom up approach also involves looking at the potential return

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Blue Sky Laws

Blue Sky Laws In the United States, blue sky laws are state laws designed to protect investors from securities fraud. Furthermore, the laws require dealers and brokers to register their securities offerings and to provide investors with the relevant financial details of each issue. The idea is to make securities offerings transparent and verifiable so

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Black Scholes Option Calculation

See Also: Common Stock Dispersion Binomial Options Pricing Model Efficient Market Theory Black Scholes Option Calculation Model The Black Scholes option calculation (stock option pricing formula) uses five variables to compute the price of a stock option. The variables are the time remaining until the stock option expires, the price of the underlying security, the

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