Private equity refers to a range of financial firms that restructure companies privately before selling them. While private equity firms may or may not buy and sell public companies, the companies are private entities during the restructuring process. Private Equity, Buyouts and Leverage Private equity firms have developed a somewhat notorious reputation for buying vulnerable […]
A debt in financial terms is a legal arrangement that outlines a specific lending and repayment procedure for a given amount of some asset, most often cash. Most debts will carry a fixed or variable interest rate or payment to compensate the lender for the absence of their asset and the counterparty risk from putting […]
UST is the colloquial trading acronym used for United States Treasury Bills, or ‘T-Bills’. UST are short-term debt securities (less than one year) issued by the federal government to finance their operations and existing obligations, and come in a range of maturities and discount prices sold in denominations of $1,000 each. Discounts Vs Interest UST […]
Allocation in finance is the process where an individual or entity assigns portions of it portfolio across the major asset classes according to its appetite for risk, its investment goals and its relevant time horizons. Since different asset classes have different general performance features, the allocation process can theoretically create quite nuanced and sophisticated portfolios […]
Rithmic is one of the most advanced futures trading platforms available on the market today. Focusing on day trading strategies, Rithmic offers users all the essential functionality for staying ahead of fast-moving markets: robust analytics, depth of market, advanced order types and more. The combination of low price and high quality makes Rithmic an easy […]
Money market is the term for the various markets where short term debt instruments are traded. Money market instruments have maturity dates ranging from overnight to just under 1 year. Shape of the Money Market The money market is intended for institutional investors that need to make wholesale trades to cover inflows and outflows of […]
It will probably come as no surprise that millennials are less likely to invest their earnings in the stock market. Millennials grew up during one of the worst recessions in history, so many prefer to park their money in cash savings instead of investing it in the stock market, which is perceived as risky. Unfortunately, […]
TrendSpider is part of the growing trend in automated charting software that is employing sophisticated algorithms to take the grunt work and guesswork out of the application of technical analysis. Not only does TrendSpider quickly apply classical technical analysis techniques to any securities covered under its broad data sets, but it also offers a range […]
Duration is a complex measure of a bond’s price sensitivity to interest rate changes. Investors who simply intend to hold a bond until maturity will have little concern for its duration, but investors who may wish to resell the bond before maturity or whose decision-making is affected by their current portfolio value will be interested […]
A credit swap is the colloquial term for a credit default swap or CDS, which is a credit derivative where the buyer pays a premium to the seller in exchange for the seller’s promise to pay out a given amount to the buyer if the underlying credit instrument fails to meet one or more outlined […]
