Blog Posts

Bond auctions are a fundamental aspect of the global financial system, as governments regularly issue bonds to raise funds and finance their expenditures. Traders and investors are always on the lookout for innovative and effective trading strategies to maximize returns. One such strategy is bond-auction trading, available to large institutional investors. In this article, we […]

What Is a Special Purpose Vehicle (SPV)? A special purpose vehicle (SPV), also known as a special purpose entity (SPE), is a legal entity created to isolate financial risk. Its bankruptcy remote status reduces the chance that creditors of the parent company can go after its assets. Special purpose vehicles can be used for a […]

What Is Probability Theory and Why Is It Important? Probability theory is essential in trading and investing because it allows market participants to understand and quantify the uncertainty and risk associated with financial decisions. Like life itself, trading is about probabilities. There are rarely black-and-white obvious outcomes that are easy to capitalize on. By using […]

What Is the Least Squares Method? The least squares method is a statistical procedure used to estimate the relationships between certain variables. This method is also known as the method of ordinary least squares (OLS) or linear least squares. The least squares method finds the line of best fit for a given set of data […]

What Is Residual Income? Residual income is defined as revenue that continues to be generated after the initial effort has been expended. This can include interest payments, dividends, and royalties. Essentially, residual income is money that is being earned without having to put in active work.   Types of Residual Income There are different types […]

When it comes to trading and investing, there are two main types of strategies: alpha and beta. Alpha refers to generating returns through active management, while beta refers to achieving returns by matching market returns. Smart beta is a combination of the two involving harvesting beta in a more efficient way. Alpha strategies Alpha strategies […]

Pink sheets are a service provided by the Over The Counter Bulletin Board (OTCBB) that provides quotes and current market information for stocks not listed on a major stock exchange such as NASDAQ or the New York Stock Exchange. Companies that trade on pink sheets are usually small, often foreign, companies with limited assets and […]

What is EBIT? EBIT is an acronym that refers to a company’s earnings before interest, and taxes. EBIT is also often referred to as operating income, and is a key metric used by investors to assess a company’s profitability and overall financial health. EBIT can be calculated by adding a company’s total revenue, and then […]

What Is Shareholder Activism? Shareholder activism is the practice of shareholders using their voting power to influence the actions and policies of a company. Activist shareholders may push for changes in management, strategy, or operations, with the goal of increasing the company’s value and performance. Activists may also push for environmental, social, or governance (ESG) […]

In markets, there is commonly the “hot thing” going around. There are always so-called hot assets that are the thing that nobody should miss out on. Sometimes it’s a certain stock or group of stocks: the Nifty Fifty in the late-60s and 1970s Cisco, Enron, Worldcom, among others of the dot-com bubble Tesla was the […]