Statistical Arbitrage Statistical Arbitrage is a profit situation as a result of pricing inefficiencies concerning securities. Investors distinguish the arbitrage scenario through mathematical modeling tactics. Statistical arbitrage…
Earnings Response Coefficient Earnings Response is the relationship between a firm’s equity results and any unexpected earnings announcements. A firm’s stock price is related to information available in…
Share Capital In share capital cash raised by issuing shares in return for cash or some other considerations. The amount of share capital an organization has can…
Treasury Stock Treasury Stock is the portion of shares that the company keeps inside their own treasury. Treasury stock could possibly have come from some sort of…
Cost of capital Cost of capital is the expense of funds used for financing a profitable business. Cost of capital depends on the mode connected with financing used…
Capital Asset Pricing Model The typical idea behind capital asset pricing model is that investors must be compensated in two ways: time benefit of money as well as risk.…
Arbitrage Pricing Theory Arbitrage Pricing Theory is an asset pricing model in line with the idea that an asset’s returns might be predicted using the relationship between that…
Electronic Communication Network Electronic communication network is definitely an automated system that matches trade orders for investments. An electronic communication network connects major brokerages and individual traders so…
Alternative Trading System Alternative Trading System is often a trading system that is not regulated as a exchange, but is some sort of venue for matching the trade…
Algorithmic Trading Algorithmic Trading is often a trading system which utilizes very advanced mathematical models in making transaction decisions from the financial markets. The strict rules that…
Uncovered Interest Arbitrage Uncovered Interest Arbitrage is a form of arbitrage that involves switching at a domestic currency that includes a lower interest rate into a foreign currency…
Covered Interest Arbitrage Covered Interest Arbitrage is a strategy in that an investor relies on a forward contract in order to hedge against trade rate risk. Covered interest…