Investments

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  • 1 Types
Alpha Stocks
Investments Market Structure
A historical London market classification for the most actively traded shares in a dealer market.
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Announcement Effect
Macroeconomics Investments
A change in prices or decisions today caused by credible news about future policy, earnings, or other economically relevant events.
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Arbitrage
Investments Economics
Profiting from price differences for the same or equivalent asset across markets or forms.
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Arbitrage Pricing Theory
Investments Valuation
A multi-factor asset pricing framework where no-arbitrage implies expected returns are linear in factor exposures.
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Arbitrageur
Investments Market Structure
A trader who exploits pricing inconsistencies and helps push markets toward more consistent prices.
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Asset Prices
Investments Valuation
The market value of claims on future payoffs, shaped by expected cash flows, discount rates, and risk premia.
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Backwardation
Trading Investments
A futures-market situation in which futures prices are below the current spot price.
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Bear
Investments Economics
A bear is an investor or market participant who expects prices to fall and positions accordingly.
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Bear Market
Investments Macroeconomics
A bear market is a broad, sustained decline in asset prices accompanied by pessimism, tighter financial conditions, or both.
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Beta Coefficient
Investments Risk Management
The beta coefficient measures how strongly an asset's returns tend to move with the market as a whole.
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Bid-Ask Spread
Trading Investments
The bid-ask spread is the difference between the highest posted buying price and the lowest posted selling price for an asset.
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Binomial Pricing
Investments Valuation
Binomial pricing values an option by letting the underlying asset move up or down step by step and ruling out arbitrage.
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Black Monday
Investments Macroeconomics
Black Monday was the global stock-market crash of October 19, 1987, when equity prices fell sharply in a single day.
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Black-Scholes Equation
Investments Valuation
The Black-Scholes equation is the no-arbitrage differential equation used to value options in continuous time under standard assumptions.
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Blue Chip
Equities Investments
A blue-chip stock is the share of a large, established company with a long record of profitability, liquidity, and market credibility.
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Bond
Fixed Income Investments
A bond is a debt security in which an investor lends money to an issuer in exchange for coupons and repayment at maturity.
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Capital Asset Pricing Model (CAPM)
Investments Valuation
A model that links an asset's expected return to its market beta and the market risk premium.
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Indexing (Passive Investing)
Investments Portfolio Management
An investment approach that aims to match a market index rather than beat it, typically using low-cost, diversified portfolios.
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Rate of Return
Investments Valuation
The percentage change in value of an investment over a period, including income and price changes.
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Speculative Bubble
Macroeconomics Investments
A run-up in asset prices driven largely by expectations of resale at higher prices rather than fundamentals.
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