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What is Settlement Date?
1. The date by which an executed security trade must be settled. That is, the date by which a buyer must pay for the securities delivered by the seller.
2. The payment date of benefits from a life insurance policy. Read more for examples and further explanation including related video clips and also comments
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What is Portfolio?
A grouping of financial assets such as stocks, bonds and cash equivalents, as well as their mutual, exchange-traded and closed-fund counterparts. Portfolios are held directly by investors and/or managed by financial professionals. Read more for examples and further explanation including related video clips and also comments
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What is Market Neutral?
A strategy undertaken by an investor or an investment manager that seeks to profit from both increasing and decreasing prices in a single or numerous markets. Market-neutral strategies are often attained by taking matching long and short positions in different stocks to increase the return from making good stock selections and decreasing the return from broad market movements. Market neutral strategists may also use other tools such as merger arbitrage, shorting sectors, and so on. There is no single accepted method of employing a market-neutral strategy. Read more for examples and further explanation including related video clips and also comments
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What is Index?
A statistical measure of change in an economy or a securities market. In the case of financial markets, an index is an imaginary portfolio of securities representing a particular market or a portion of it. Each index has its own calculation methodology and is usually expressed in terms of a change from a base value. Thus, the percentage change is more important than the actual numeric value.
Stock and bond market indexes are used to construct index mutual funds and exchange-traded funds (ETFs) whose portfolios mirror the components of the index. Read more for examples and further explanation including related video clips and also comments
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What is Equity?
1. A stock or any other security representing an ownership interest.
2. On a company’s balance sheet, the amount of the funds contributed by the owners (the stockholders) plus the retained earnings (or losses). Also referred to as “”shareholders’ equity””.
3. In the context of margin trading, the value of securities in a margin account minus what has been borrowed from the brokerage.
4. In the context of real estate, the difference between the current market value of the property and the amount the owner still owes on the mortgage. It is the amount that the owner would receive after selling a property and paying off the mortgage.
5. In terms of investment strategies, equity (stocks) is one of the principal asset classes. The other two are fixed-income (bonds) and cash/cash-equivalents. These are used in asset allocation planning to structure a desired risk and return profile for an investor’s portfolio. Read more for examples and further explanation including related video clips and also comments
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What is Brazil ETF?
An exchange-traded fund that invests in Brazilian stocks, either through local stock exchanges or with American and global depositary receipts on European and U.S. stock exchanges. Brazil ETFs are passively managed and are based on a country index created by fund managers, or a widely followed third party index. Read more for examples and further explanation including related video clips and also comments
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What is Index Arbitrage?
An investment strategy that attempts to profit from the differences between actual and theoretical futures prices of the same stock index. This is done by simultaneously buying (or selling) a stock index future while selling (or buying) the stocks in that index. Read more for examples and further explanation including related video clips and also comments
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What is Short-Term Investments?
An account in the current assets section of a company’s balance sheet. This account contains any investments that a company has made that will expire within one year. For the most part, these accounts contain stocks and bonds that can be liquidated fairly quickly. Read more for examples and further explanation including related video clips and also comments
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What is Instinet?
An electronic securities order matching (trading) and information system that allows members (primarily professional traders and investors) to display bid and offer quotes for stocks, and to transact between themselves using brokers. As a global securities broker, Instinet enables more than 1,500 institutional customers to trade securities in more than 40 global markets. Read more for examples and further explanation including related video clips and also comments
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What is Bond ETF?
A type of exchange-traded fund (ETF) that exclusively invests in bonds. Bond ETFs are very much like bond mutual funds in that they hold a portfolio of bonds and can differ widely in strategies, ranging from U.S. Treasuries to high yields, from long-term to short-term. Bond ETFs trade like stocks and are passively managed. Read more for examples and further explanation including related video clips and also comments
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