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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 […]

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 […]

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 […]

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 […]

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 […]

Binance has launched the Industry Recovery Initiative (IRI), a co-investment enterprise to champion the development of web3. This follows the failure of FTX, which left millions of customers out of pocket and the industry on shaky ground. Industry Recovery Initiative The IRI aims to help promising, high-quality projects that may be facing short-term financial challenges. […]

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 […]

What Is Window Dressing? Window dressing is a practice used by corporations and businesses in their financial reports to make the company appear more profitable than it actually is. It involves manipulating accounting numbers or hiding certain information, such as debt or expenses, so that the overall financial picture looks better. Window dressing can be […]

What Is a Deferred Tax Asset? A deferred tax asset is an accounting term that refers to a situation when a taxpayer has overpaid taxes, or paid taxes in advance, and is entitled to receive a refund of the amount paid. It is created when taxable income is reported on an income statement but the […]

What Is a Reverse Stock Split? A reverse stock split is a corporate action in which a company reduces the total number of its outstanding shares and increases the share price proportionally. It is usually done to boost investor confidence or comply with exchange listing requirements. For example, if a company performs a 1-for-10 reverse […]