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Now the economic activities of companies are carried out in the conditions of accruing uncertainty of a situation and variability of the economic environment. Real alternatives and freedom degree increase in the field of the risk account. There is an ambiguity and uncertainty in reception of expected result, the risk hence increases. So, the risk […]

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There are a few definitions of the term interest rate in economics. The article provides the next definitions:
1. The interest rate is the yearly price charged by a lender to a borrower in order for the borrower to obtain a loan. This is usually expressed as a percentage of the total amount loaned.
2. The proportion […]

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There are many types of portfolio that depends on the field of activity.  In finance, a portfolio is a collection of investments held by an institution or a private individual. In building up an investment portfolio a financial institution will typically conduct its own investment analysis, whilst a private individual may make use of the […]

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The article helps to define a good time for selling a winning stock. Take the example of one stock investor.
So, a stock investor has a stock that had a good run and now he wonders whether he should take his profits and run or wait for a sign that the stock is about to reverse […]

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This article defines the sense of a financial institution in financial economics. A financial institution acts as an agent that provides financial services for its clients. Financial institutions generally fall under financial regulation from a government authority. Common types of financial institutions include banks, building societies, credit unions, stock brokerages, asset management firms, and similar […]

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YTM is a measure that only approximates the true return.  Nevertheless it is useful because it is a quick way of making rough comparisons of the returns on bonds of different coupons and maturities.
Yield-to-Maturity vs Total Return
There are similarities between YTM and TR.  Both are the annualized compound rate of return from purchase to sale.  […]

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When Harry Markowitz defended his dissertation on Modern Portfolio Theory in the early 1950s, it’s doubtful that anyone present had any inkling of the tremendous impact it would have on modern finance. But the revolution didn’t exactly spread like wildfire; it took a long time for the impact to be felt. Academics labored away in […]

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This article is about stocks, mainly types of stocks, stock derivatives, stocks trading and other related information.
Stock is the capital raised by a corporation or joint-stock company through the issuance and distribution of shares. A person or organization which holds at least a partial share of stocks is called a shareholder. The aggregate value of […]

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Candlestick charting was first developed by Japanese rice traders and can be traced back several hundred years in the 18th century. According to Steve Nison, candlestick charting first appeared sometime after 1850. Much of the credit for candlestick development and charting goes to a legendary rice trader named Homma from the town of Sakata. It […]

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