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Martingale System in Financial Markets

What Is A Martingale System in Financial Markets? A Martingale system is a type of investment or trading strategy that involves increasing the amount of money invested in an asset as the price of that asset goes down. The idea behind this strategy is that the increased investment will eventually pay off when the price […]

Oligopoly Examples

What Is An Oligopoly? An oligopoly is a market structure in which a small number of firms dominate the industry. In an oligopoly, each firm has a significant level of market power and can influence prices and other market conditions. Oligopolies often arise in industries where there are high barriers to entry, such as industries […]

Cash on Cash Return

What Is a Cash on Cash Return? A cash on cash return is a measure of the cash flow that an investment generates relative to the amount of cash invested. It is calculated by dividing the annual cash flow generated by the investment by the initial cash investment, and is expressed as a percentage. For […]

Hedge Fund vs. Venture Capital

A hedge fund and venture capital firm are both investment vehicles that seek to grow investor capital. However, the strategies and objectives of each firm are distinct. In this article, we’ll explore these differences and the similarities that they sometimes have. Hedge Funds vs. Venture Capital Firms – Exploring the Differences Hedge funds are typically […]

Hedge Fund vs. Mutual Fund

A hedge fund and mutual fund are both types of investment vehicles that provide a way for individuals to invest their money. However, they each have different goals, strategies, and management structures which makes them appealing to different types of investors.   Hedge Fund vs. Mutual Fund – Key Takeaways Hedge funds are typically only […]

Accredited Investors

What Are Accredited Investors? Accredited investors are eligible to participate in certain securities offerings, including private placements, structured products, and private equity, venture capital, or hedge funds that may not be available to the general public. These investments can provide investors with access to higher returns and increased diversification of their portfolios that might not […]

False Diversification

What Is False Diversification? False diversification is the state of having many positions in a portfolio but little actual diversification due to the high level of correlation between positions. Example of False Diversification Let’s say a trader is employing the following book: Long Brazilian Real vs US Dollar Long industrial commodities Long oil Short Treasuries […]

Transfer Pricing

What Is Transfer Pricing? Transfer pricing is a method of determining prices for goods and services that are exchanged between related parties, such as international affiliates of a single company or corporate entities within the same group. By setting transfer prices, companies can allocate costs and profits across disparate entities, allowing them to reduce their […]

What Is the Future of the 401(k) and IRA?

The 401(k) is a retirement plan that provides tax incentives to individuals. The IRA, or Individual Retirement Account, is another retirement plan available to individuals. Both of these plans offer tax benefits and the ability to save for retirement. While each has its own advantages, there are several similarities between them. Both 401(k)s and IRAs […]

Diseconomies of Scale

What Are Diseconomies of Scale? Diseconomies of scale are the opposite of economies of scale, and they refer to an increase in a company’s average costs when its size increases. This can be due to internal factors such as increased bureaucracy, inflexibility, or communication difficulties. It can also be caused by external factors such as […]

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