An investment view is a fundamental analysis tool used by investors to make informed investment decisions. It is based on an analysis of a company’s financial statements and other publicly available information, and reflects an investor’s assessment of a company’s long-term prospects. An investment view takes into account a variety of factors, including a company’s … Read more
What Is Capital Reduction? Capital reduction is a process whereby a company reduces its share capital. This may be done by cancelling shares, repurchasing shares, or by some other means. Why Would a Company Reduce Its Share Capital? There are several reasons why a company might want to reduce its share capital. For example, it … Read more
Conditional Value at Risk (CVar): Definition, Uses, Formula. Is CTE a risk metric? CTE is a risk metric, but it is not the only risk metric. CTE can be used to measure the risk of a portfolio, but it is not the only metric that can be used. There are other risk metrics, such as … Read more
Probability theory is the branch of mathematics that deals with the analysis of random phenomena. The central idea of probability theory is that of a probability space, which is a mathematical model of a random process. A probability space consists of a set of possible outcomes, called the sample space, and a set of probabilities … Read more
Nominal value is defined as the stated value of a security, without taking into account any adjustments for inflation or other economic factors. For example, the nominal value of a bond may be $1,000, but its real value may be less than that if inflation increases over the life of the bond. Similarly, the nominal … Read more
What You Need to Know About Factor Investing What are the main types of charts used in technical analysis? There are many types of charts used in technical analysis, but the three most common are bar charts, candlestick charts, and line charts. Bar charts show the opening and closing price, as well as the high … Read more
The Delphi method is a structured technique for eliciting expert opinions, which was developed by the Rand Corporation in the 1950s. It is a widely used, although somewhat controversial, tool for forecasting and decision making in business and government. The Delphi method is based on the premise that the collective opinion of a group of … Read more
The margin of safety is the difference between the intrinsic value of a security and its market price. It is a measure of the safety of an investment, as it represents the amount by which the market price would have to fall before the investment became unprofitable. For example, if a stock has an intrinsic … Read more
What Is Sample Distribution? Sample distribution is a statistical tool that is used to understand how a given set of data is distributed. This is done by looking at the mean, median, and mode of the data set. How do you know if a sample is normally distributed? There are several ways to determine if … Read more
A fully depreciated asset is an asset that has been fully written off for tax purposes. This means that the asset has been used for its entire useful life and can no longer be used to generate income. The asset may still have some value, but it is not considered to be an active part … Read more
