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Arbitrage is the practice of buying a security/product in one market and selling it in another, in an effort to capitalize on price difference.
Arbitrage can take many forms in trading: buying a security in one market and selling it in another for a better price (market arbitrage); borrowing money in one currency at a lower interest rate in order to pay off debt in another currency with a higher interest rate (currency arbitrage); buying and selling the same security on different exchanges or between spot prices of a security and its future contract; and so on.
Opportunities for arbitrage exist but only very rarely, and once they’re discovered the market tends to correct the price inefficiency very quickly.
Hedge funds are private investment groups that attract high net worth individuals and use riskier investment strategies
Stocks are inherently risky, and an investor has risk of capital loss. As with most things in life, no risk yields no...
Real estate investments fall into a wide spectrum of subsets. You can invest in residential property, commercial, etc.
REITs are similar to mutual funds, except that they only invest in real estate properties, related companies, and assets
Capital structure gives a framework for a company’s makeup and how it finances its operations, because it includes...
Bond insurance is a contract that protects the issuer and the holder of bonds from the risk that bond payments will...
Settling an account is laying all outstanding business on an account to rest. In macroeconomics, it is a ledger account
A foreign fund is a mutual fund that invests solely in companies abroad, and does not invest in corporations in the US
CTRs are required filings to the Financial Crimes Enforcement Network to report all cash transactions worth over $10,000
EBITDA is used as a ballpark figure for where the company’s earnings are without these expenses. EBITDA has no standard