What is a Noise Trader? Noise trader is generally a term used in academic finance studies associated with the Efficient Markets Hypothesis (EMH). The definition is often vaguely stated throughout the literature though it is mainly intended to describe investors who make decisions to buy or sell based on factors they believe to be helpful…
Stock message boards give investors an opportunity to connect with other investors at all levels of expertise and learn more about profitable investing strategies. Although the communication methods on the Internet can be wide in range—from newsletters to podcasts to blogs—messages boards that focus on investing and personal finance continue to be one of the…
It is possible for an insurer to cancel a policy after only one accident, but it’s unlikely. There is a higher likelihood of the insurer canceling the policy if the accident results in the revocation of your driver’s license or is due to driving under the influence (DUI) or driving while intoxicated (DWI). Some states…
Quest Diagnostics Incorporated (DGX) shares briefly broke out from trendline resistance after the company announced that it would launch a coronavirus testing service beginning on March 9, 2020. The molecular diagnostic assay that detects viral RNA is pending review by the Food and Drug Administration under the Emergency Use Authorization provision. The announcement came shortly…
What Is Vertical Foreign Direct Investment? Foreign direct investment (FDI) is an investment made by a company (or individual) into a business located in another country. It can either be in the form of establishing business operations or acquiring business assets in a foreign country. A horizontal direct investment occurs when a company establishes the same…
If you have a lot of storage space, your attic and garage may be stuffed with old furniture, books, and other items you’ve held onto over the years. At first glance, it may just seem like nothing more than a pile of junk. But, if you rummage through carefully, there may be a chance that…
Borrowing from your 401(k) or withdrawing money from your IRA before you have retired is generally a bad idea because it can set you back years in reaching your retirement savings goals. Not only do you lose the opportunity to earn compound returns on the money you withdraw or borrow, but people usually stop making contributions…
What Is Public? Public refers to anything that can be accessed by any person or group in the general population. In the context of investment and finance, the term is most commonly used to describe securities that are available on an exchange or an over-the-counter market, and the population who trades those securities. Key Takeaways…
What Is Structured Finance? Structured finance is a heavily involved financial instrument presented to large financial institutions or companies with complicated financing needs who are unsatisfied with conventional financial products. Since the mid-1980s, structured finance has become popular in the finance industry. Collateralized debt obligations (CDOs), synthetic financial instruments, collateralized bond obligations (CBOs), and syndicated…