Hypothesis testing is an instrument in the financial market trader's toolbox to help guide investment strategy by statistical means. The use of charts and historical data is commonplace, but the use of statistical mathematics is rare among private investors.
Anecdotal evidence from the investment banking industry suggests that 70% of all mergers and acquisitions (M&A) fail and destroy value, sometimes spectacularly.
Call and put options can be used to maximise profits or limit downside risk, having become some of the most popular types of derivatives available to investors. But what exactly are they, and how do they work?
Are cryptocurrencies the future of international financial transactions? Can they be traded? Will the supermarket shopper use a digital currency to buy their groceries any time soon? To answer those questions, it’s necessary to look at exactly what a cryptocurrency is.
Socially responsible investing (SRI) seeks to get a big bang for your buck while bringing about social change. It is also called social investment, sustainable, socially conscious, ‘green’ or ethical investing. SRI funds do better than you think.
Employee stock options are schemes to enable workers to buy stakes in the companies they work for. They can be an effective way of rewarding, retaining and incentivising staff, and were historically seen as a highly desirable staff benefit.
Short selling and buying put options can be used to profit from falling share prices. But what differentiates the two approaches and how do they stack up against each other?
Deflation fires off a tonne of things central bankers don’t want in a grown-up economy
Internet companies – Amazon, Google, Apple – are among the hottest sector buys, and have been during the past five years, but it can be confusing, time consuming and costly picking the individual stocks for your portfolio
Euronext describes itself as the leading pan-European exchange in the eurozone. It had nearly 1,300 listed issuers worth some €3.5 trillion in market capitalisation at end March 2017.
Frankfurt-based Deutsche Börse Group traces its roots to 1585. It is one of the largest exchange organisations worldwide. It has an integrated business model.
The disposition effect is when an investor, or investors, hold on to losing stocks too long and sell winning stocks too soon. It is based on fear of making losses.