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Investments glossary

Global Macro Hedge Fund

Global macro hedge funds are actively managed funds that attempt to profit from broad market swings caused by political or economic events. Global macro hedge funds are market bets around economic events. Investors use financial instruments to create read more

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Investments glossary

Non-Controlling Interest

A non-controlling interest, also known as a minority interest, is an ownership position wherein a shareholder owns less than 50% of outstanding shares and has no control over decisions. Non-controlling interests are measured at the net asset value read more

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Investments glossary

Sharpe Ratio

The Sharpe ratio was developed by Nobel laureate William F. Sharpe and is used to help investors understand the return of an investment compared to its risk. The ratio is the average return earned in excess of the risk-free rate per unit of volatility read more

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Investments glossary

Order

An order is an investor’s instructions to a broker or brokerage firm to purchase or sell a security on the investor’s behalf. Orders are typically placed over the phone or online through a trading platform. Orders fall into different available read more

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Investments glossary

Passive Income

Passive income is earnings derived from a rental property, limited partnership, or other enterprise in which a person is not actively involved. As with active income, passive income is usually taxable. However, it is often treated differently by the read more

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Investments glossary

Smart Contracts

A smart contract is a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code. The code and the agreements contained therein exist across a distributed, decentralized blockchain network. read more

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Investments glossary

David Ricardo

David Ricardo (1772–1823) was a classical economist best known for his theory on wages and profit, labor theory of value, theory of comparative advantage, and theory of rents. David Ricardo and several other economists also simultaneously and independently read more

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Investments glossary

KBW Bank Index

The KBW Bank Index is a benchmark stock index of the banking sector. The index was developed by the investment bank Keefe, Bruyette and Woods, which specializes in the financial sector. It includes a weighting of 24 banking stocks selected as indicators read more

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Investments glossary

Pump and Dump

Pump-and-dump is a scheme that attempts to boost the price of a stock through recommendations based on false, misleading or greatly exaggerated statements. The perpetrators of this scheme already have an established position in the company’s read more

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Investments glossary

Wraparound Mortgage

A wraparound mortgage is a type of junior loan which wraps or includes, the current note due on the property. The wraparound loan will consist of the balance of the original loan plus an amount to cover the new purchase price for the property. These read more