What is a discretionary account and why do you need one
A discretionary account is an investing account in which the investor has given the investment advisor discretion over the account's investments. The advisor has the authority to buy and...
The White Shoe Firm - The Top Three Reasons Not to Hire a White Shoe Firm
Despite their name, a white shoe firm can seem a little too stiff for the common man. Perhaps it is too rigid because of...
What is the mosaic theory and what does it involve
The mosaic theory is a method of analysis used by security analysts to gather information about a corporation. The mosaic theory involves collecting public, non-public, and non-material information about a...
What is risk neutrality and why is it important
Risk neutrality is the idea that people are indifferent between different outcomes that have the same expected value. In other words, if you have a 50% chance of winning $100 and...
What Is Historical Cost Accounting?
Historical cost accounting is a method of accounting that reports an asset or liability at its historical cost, instead of its current value. Historical cost accounting is a common method for businesses and organizations to...
What is financial distress and how can it impact your life
Financial distress is a state of financial strain that can be caused by a variety of factors, including job loss, medical bills, and credit card debt. It can lead...
The Volatility Smile and Its Importance to Options Traders
The term "volatility smile" has been used to describe the behavior of financial options. Volatility smiles are a parameter in the Black-Scholes formula that must be adjusted to match market prices....
Market Breadth and Divergence
A security analysis indicator that shows how well stocks are moving in a trend is known as market breadth. Market breadth is the ratio of advancing stocks to declining ones. Divergence is the opposite of market...
What is adjustable life insurance and how does it work
Adjustable life insurance is a type of whole life insurance that gives policyholders the ability to make changes to their death benefit and premium payments. Unlike traditional whole life insurance,...
What are discontinued operations?
Discontinued operations are a business, group of components, or nonprofit activity that has ceased operations. These activities are usually not profitable or in existence any longer, and their demise means that the company no longer exists....