Cash accounts and margin accounts are the two main types of brokerage accounts. While there are many differences between the two, the most notable is that a margin account allows you to borrow money and trade on margin while a …
An investment mandate is a set of instructions for how an investment manager may invest money for a particular fund. A mandate may specify acceptable investments, position risk constraints, other restrictions, and an appropriate benchmark. If you plan to use …
Retail traders can beat institutional traders by being patient and targetting small and unregulated markets. Retail traders can wait for the best opportunities to present themselves, whereas institutional traders may need to make suboptimal investments to track benchmarks or investment …
Trading quotes distill the complex trading world into insightful, bite-sized nuggets of wisdom. No matter your level of experience, you’re sure to find value in these 20 trading quotes from some of the greatest traders. In this post, I’ll share …
A hedge fund is a limited partnership of investors that can make extensive use of more sophisticated trading, portfolio construction, and risk management techniques to improve performance, such as short selling, leverage, and derivatives, in hopes of realizing substantial capital …
Investing quotes are popular for a reason — they allow you to learn the essential lessons from the greatest investors of all time in just a few short sentences. In this post, I will go over some of my favorite …
A robo-advisor is a financial advisory firm that delivers its services through software systems. Robo-advisors provide financial advice and investment management based on mathematical and statistical models with little to no human intervention. Robo-advisors have transformed the industry even though …
Window dressing refers to manipulation by portfolio managers near the end of a financial period to make the fund appear more successful when reporting results to investors. In this post, we will look at why portfolio managers use window dressing, …
A registered investment adviser (RIA) is an investment adviser who has registered with the Securities and Exchange Commission (SEC) or the state in which they do business. According to the SEC, an Investment Adviser is “a person or firm that is …
Have you ever heard someone on TV saying that a politician or policymaker was being “too hawkish” or “too dovish”? Maybe you know that means something about their views on the money supply, banking, and inflation, but it’s all hazy? …