Financial Options: A Guide to Puts and Calls If you are interested in trading financial options, you need to understand the basics of puts and calls. These are the two types of derivative contracts that give you the right, but … Continue reading What are financial options?
A hedge fund is an investment vehicle that pools together money from a group of investors and uses a variety of investment strategies in an attempt to generate high return, which is very similar to what we have discussed under … Continue reading What are Hedge Funds?
Futures and forwards are financial derivatives that are used to hedge against or speculate on the price movements of an underlying asset. The forwards gave birth to derivative markets and were initially used for various commodities only. With the development … Continue reading What are futures and forwards?
Liability-driven investing (LDI) is an investment strategy that aims to align the investments of a pension fund or other institutional investor with the liabilities or obligations it is expected to meet. In other words, LDI seeks to match the assets … Continue reading What is LDI?
In a world where investors are constantly looking for new ways to invest, structured products could be exactly what they are searching for. Whereas equities are usually tied to the performance of a company or index and bonds have specific rates at which they are paid out, structured products tend to have more flexibility in both their risk and return profiles. Continue reading What are Structured Products?
Generally, what comes to mind when we hear “financial funds” is money. While this is accurate, this term perfectly describes a “pool” of money. Usually, pooling money is a way to achieve a specific financial goal that is probably capital-intensive. … Continue reading What are Financial Funds?
Derivatives are often thought of as confusing and overly complicated. Simply put, it is a financial product that derives its price from the underlying assets, which can be stocks, bonds, commodities, exchange or interest rates, market indexes, and even other derivative instruments. Continue reading What are derivatives?
While equities are the most visible asset class, the bonds are the most diverse. Typical company has one, few firms have a couple of equities share classes. The most notable examples are tech firms such as Alphabet and Facebook having … Continue reading What are bonds?
This is the asset class with the largest valuation globally. Equity represents an ownership of the company share. Essentially, the ownership of equity entitles you to receive the future incomes of the company and allows you to decide on the company’s behalf based on the stake owned. Continue reading What are equities?
The range of investment options is so broad that it might be overwhelming for a new person exploring their long- and short-term portfolio needs. Historically, the asset classes were equities, bonds, and cash, however, the present-day list can be expanded with alternatives (real estate, commodities, venture capital, direct private equity, and real estate. Continue reading ‘What are’ articles. Financial instruments’ variety
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