Blog Posts

Public markets vs. private markets (public equity vs. private equity) is one of the most fundamental debates in the world of finance. How companies can raise money Companies have a variety of methods by which they can raise capital. The two most common are debt and equity. Debt can take the form of bonds, which […]

What Is Return on Equity (ROE)? Return on equity (ROE) is a profitability ratio that measures the return that shareholders earn on their investment in a company. ROE combines a company’s net income with its balance sheet to give investors an idea of how well management is using the company’s assets to generate profit. Generally […]

What Is Operating Income? Operating income is a measure of a company’s profitability from its core business activities. It is calculated as revenue from operations minus operating expenses. Operating income is also sometimes referred to as “operating profit” or “EBIT“. Operating income is a key metric for assessing a company’s financial performance, since it provides […]

The Black-Scholes model is a mathematical approach toward evaluating the price of an option on an underlying stock/equity. As one of the most accurate option pricing models available, Black-Scholes is still one of the common frameworks by which options prices are modeled and has been in use for over forty years. It’s derived from an […]

Pension funds operate by pooling the money of many investors to allocate into a wide variety of assets, including stocks, bonds, real estate, and other investment alternatives. Pensions are managed by professional fund managers that oversee a pool of funds specific to a certain group, such as a group of teachers in a particular school […]

‘Bitcoin vs. Gold’ is an increasingly popular debate in trading, investing, and market circles as people debate a classic store of value (gold) versus a newer digitized version (bitcoin).  Cryptocurrencies, with bitcoin being the most popular, have mostly been driven by speculation. However, as they mature and have more institutional adoption, bitcoin and others could […]

Cornering a market means to gain control over a significant portion of the supply of a particular commodity or asset, in order to manipulate prices to one’s advantage. This can be done by buying up a large quantity of the asset, or by controlling key production or distribution points.   Markets Where Cornering Occurs There […]

If you’re new to real estate investing, you’ve probably heard the term “net operating income” (NOI) thrown around a lot but may not be entirely sure what it means. NOI is a key metric that all investors should understand, as it’s a good indicator of a property’s profitability. In this article, we’ll explain what NOI […]

A collateralized debt obligation (CDO) is a structured financial product that repacks and sells existing debt as securities. CDOs usually consist of a pool of asset-backed securities, such as: mortgage loans, including subprime mortgages auto loans credit card receivables, and more The CDO issues separate tranches or slices of the bundled debt into different risk […]

Monthly dividends are prized because they provide reliable and consistent income. Dividends by and large are used to signal that a certain amount of corporate earnings are guaranteed. Stocks tend to be punished heavily when dividends are cut. And given most companies tend to grow their earnings over time and dividends become a more realistic […]