What are Bearer Bonds? Bearer bonds are debt instruments issued by governments and corporations that are not registered to any owner. They’re unregistered as investment securities and completely anonymous. As a result, no records exist that list the owners’ names. They are outlawed in the USA due to their use […]
What Is Buying on Margin? Buying on margin means borrowing money from your brokerage company and using that money to buy stocks. It is no different than taking out a loan to buy stocks. If the stock price goes up, you can repay the loan with the gain. If the […]
What Is Actuarial Science? Actuarial science is a discipline that uses mathematics, statistics, and economics to assesses financial risks in the insurance and finance fields. Actuarial science majors use this training in mathematics and economics to solve business problems that identify and manage financial risk. Actuaries apply the mathematics of […]
What Is the Sortino Ratio? The Sortino ratio evaluates risk vs return on an investment or portfolio. It is a variation of the Sharpe ratio but it only factors in downside deviation. For an investor, the ratio helps determine an investment’s return relative to risk. Investors can also use it […]
What Is the Cash Ratio? The cash ratio is a liquidity measure that indicates a company’s ability to pay off short-term debt with its cash and cash equivalents. The ratio provides a quick glimpse at a company’s liquidity. Specifically, the ratio of a company’s total cash and equivalents to its current […]
What Is the Holding Period Return? The holding period return is the total return or yield received over the period of time an investment is held by an investor. It is usually expressed as a percentage. HPR is a measure of the total yield received from holding an asset or portfolio of […]