Tag: short term

Momentum Fund definition explanation

What is Momentum Fund?
Investment funds that invest in companies based on current trends in such things as earnings or price movement. The portfolio manager will look for companies that have been trending in a certain direction (e.g. a series of extremely positive earnings releases or upward price momentum in the short term). The manager will then take positions in the same direction as the trend and attempt to ride the wave and sell once it has peaked.

These funds are also known as “”momo funds””. Read more for examples and further explanation including related video clips and also comments
Continue reading “Momentum Fund definition explanation”

Current Account Deficit definition explanation

What is Current Account Deficit?
Occurs when a country’s total imports of goods, services and transfers is greater than the country’s total export of goods, services and transfers. This situation makes a country a net debtor to the rest of the world. Read more for examples and further explanation including related video clips and also comments
Continue reading “Current Account Deficit definition explanation”

Timeliness definition explanation

What is Timeliness?
A proprietary rating system used to rate stocks while taking into account earnings changes and price performance in order to assess potential price performance over the short term. Common market factors are not measured in this stock rating system. The rating of “”A”” is the highest rating and a rating of “”E”” is the lowest. These ratings are updated daily. Although “”A”” and “”B”” stocks may yield higher returns compared to “”C”” and “”D”” stocks, these higher rated stocks tend to be much more volatile. Read more for examples and further explanation including related video clips and also comments
Continue reading “Timeliness definition explanation”

Short Term definition explanation

What is Short Term?
1. In general, holding an asset for short period of time.

2. In accounting, an asset expected to be converted into cash in the next year, or a liability coming due in the next year. Also known as current assets and liabilities.

3. For investing, a security that matures in one year or less.

4. For taxes, a holding period of less that one year. Read more for examples and further explanation including related video clips and also comments
Continue reading “Short Term definition explanation”

Style definition explanation

What is Style?
The investment approach or objective that a fund manager uses to make choices in the selection of securities for the fund’s portfolio. While there are a variety of styles, there are nine basic investing styles for both equity and fixed-income funds. For stock funds, company size and value/growth characteristics determine the style. For bonds, style is defined by maturities and credit quality. Read more for examples and further explanation including related video clips and also comments
Continue reading “Style definition explanation”

Rolling Hedge definition explanation

What is Rolling Hedge?
A strategy for reducing risk that involves using the high levels of liquidity typically present with exchange-traded futures and options in order to achieve a continual risk-offsetting position. A rolling hedge is done by closing out existing positions as they near maturity and then concurrently opening new positions with maturity dates further in the future. Read more for examples and further explanation including related video clips and also comments
Continue reading “Rolling Hedge definition explanation”

Spread-Load Contractual Plan definition explanation

What is Spread-Load Contractual Plan?
A fee-payment structure applicable to mutual funds in which the sales charge or commission (load) is not entirely paid at the time the investor first contributes funds to the mutual fund (or in the first several contributions either). Instead, the mutual fund load is dispersed across an extended time period, so that the load is more accurately applied to each contribution. Read more for examples and further explanation including related video clips and also comments
Continue reading “Spread-Load Contractual Plan definition explanation”