EDU Articles
Learn about investing, trading, retirement, banking, personal finance and more.
What was the “South Sea Company” Bubble?
The South Sea Company was created in Britain in the 18th Century, by the British government.
The purpose of the company was to conduct trade with South American colonies belonging to Spain. The company quickly became a popular investment instrument among British nobility, but the frenzy quickly grew to gigantic proportions as trade picked up, but it wasn't sustainable. The bubble burst a few years later.
What is a derivative?
A derivative is a security which monetizes the risk or volatility associated with a reference asset
Will my target mutual funds miss their targets?
There are many target date mutual funds that have appeared in the past 5-10 years, which are supposed to simplify...
What is the Barbell Strategy for Structuring my Bond Portfolio?
The barbell strategy divides a sum, for instance $10,000, equally among bonds with short durations and bonds with...
What is the Law of Demand?
The Law of Demand states that as prices increase, demand will decrease, and vice versa. That is to say, inversely related
What is an Accelerated Share Repurchase?
An Accelerated Share Repurchase (ASR) is a method where companies can buy back a significant amount of their shares
BB+/Ba1 — credit rating
This rating is the highest non-investment grade category that the ratings agencies will give to a bond...
What are foreign currency effects?
Companies with significant operations or sales abroad will be affected by changes in foreign currency exchange rates
What is a foreign currency swap?
Currency swaps are where banking institutions exchange a loan in one currency for a loan in another currency
What is market exposure?
Market exposure is the degree to which an investor is participating in the risks and returns of the market as a whole
What is Chapter 7?
Chapter 7 is a type of bankruptcy filing that allows an individual to liquidate enough assets to repay their debts