Articles on Stock markets
News, Research and Analysis
What is Unsystematic Risk?
Unsystematic risk is idiosyncratic or unique risk that does not reflect a direct correlation with the risk present in the market, or systematic risk.
Most securities and portfolios experience risk and variations which are not attributable to the market as a whole, and this is known as unsystematic risk. Systematic risk, on the other hand, is the risk borne by all investors in the market, where broad changes in the market cannot be avoided through diversification of a portfolio.
Unsystematic risk, theoretically, can be diversified away. The more diversification a portfolio has, the closer its beta will be to 1, meaning it will have a closer and closer correlation with the risk of the market as a whole.
Due to the risk-return tradeoff, some unsystematic or additional risk must be taken on beyond the market risk if an investor seeks to outperform the market.
What is a Mortgagee?
When a mortgage loan is made, the bank or loan institution is the mortgagee, while the consumer is the mortgagor
What is FINRA?
FINRA stands for Financial Industry Regulatory Authority, and they regulate securities firms in the United States
What Does Mark to Market (MTM) Mean?
Mark to Market (MTM) is an accounting method meant to price an asset by its most recent market price
What is a Convertible Bond?
A convertible bond, also known as convertible debt, is debt that can be converted to equity (in the form of common stock)
What does PIP mean?
A PIP is the standard smallest increment of change or precision at which a currency is quoted and tracked in Forex markets
What is a short sale?
A short sale is the sale of a security not owned by an investor, which the investor has borrowed from the broker to sell
What was the “Dot Com” Bubble?
The late 1990’s saw a huge uptick in the number of tech startups, as the age of the Internet took hold and new companies
If Everyone is Talking about Buying Gold, Should I Buy Some for My Portfolio as Well?
Gold, as any other commodity (silver, platinum, coffee beans, etc), might be a valuable part of your asset allocation
Should I Trust an Article Such as “What Are the Best Mutual Funds?”
Probably not, but it might get you thinking in the right direction. The short answer is “no.” There's no easy way out
What is a resistance line?
A resistance line is the glass ceiling through which a security price has trouble breaking in technical analysis