Tag: theory

Uncovered Interest Arbitrage

DefinitionUncovered interest arbitrage is an arbitrage trading strategy whereby an investor capitalizes on the interest rate differential between two countries. Unlike covered interest arbitrage,...

Economic Cycle

DefinitionThe business cycle, also known as the economic cycle or trade cycle, is the downward and upward movement of gross domestic product around its...

Kenneth Arrow

DefinitionKenneth Joseph "Ken" Arrow was an American economist, mathematician, writer, and political theorist. He was the joint winner of the Nobel Memorial Prize in...

Risk Tolerance

DefinitionIn economics and finance, risk aversion is the behavior of humans, when exposed to uncertainty, in attempting to lower that uncertainty. It is the...

Economic Growth

DefinitionEconomic growth is the increase in the inflation-adjusted market value of the goods and services produced by an economy over time. It is conventionally...

Inflation

Inflation is well defined as a sustained increase in the general level of prices for goods and services wherein the purchasing power falls. It...

Offset

What does 'Offset' mean An offset involves assuming an opposite position in regards to the original opening position. Additionally, to offset is...

Portfolio

The grouping together of financial assets like cash equivalents, bonds, stocks and their counterparts whether they are closed fund or exchange related is known...

Savings

DefinitionSavings.com is a website that offers coupons and promotional savings, known as "deals," redeemable at nationally recognized merchant web sites and stores. Savings.com sources...

Liquidity

DefinitionIn business, economics or investment, market liquidity is a market's feature whereby an individual or firm can quickly purchase or sell an asset without...

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