Survivorship bias or survivor bias is the tendency to view the performance of existing stocks or funds in the market as a representative comprehensive sample without regarding those that have gone bust. Survivorship bias can result in the overestimation of historical performance and general attributes of a fund or market index.
A mutual fund is a type of financial vehicle made up of a pool of money collected from many investors to invest in securities like stocks, bonds, money market instruments, and other assets. Mutual funds are operated by professional money managers, who allocate the fund’s assets and attempt to produce capital gains or income for the fund’s investors. A mutual fund’s portfolio is structured and maintained to match the investment objectives stated in its prospectus.
Internalization occurs when a transaction is handled by an entity itself rather than routing it out to someone else. This process may apply to business and investment transactions, or to the corporate world.
A stock promoter is an individual or organization that helps raise money for some type of investment activity. Stock promoters may raise money for a company by offering investment vehicles other than traditional stocks and bonds, such as limited partnerships and direct investment activities. Often, promoters are paid in company stock or a percentage of the capital raised.
The Gordon Growth Model (GGM) is used to determine the intrinsic value of a stock based on a future series of dividends that grow at a constant rate. It is a popular and straightforward variant of a dividend discount mode (DDM).
Nominal value of a security, often referred to as face or par value, is its redemption price and is normally stated on the front of that security. With respect to bonds and stocks, it is the stated value of an issued security, as opposed to its market value. In economics, nominal values refer to the unadjusted rate or current price, without taking inflation or other factors into account as opposed to real values, where adjustments are made for general price level changes over time.
A euro medium-term note is a medium-term, flexible debt instrument that is traded and issued outside of the United States and Canada. These instruments require fixed payments and are directly issued to the market with maturities that are less than five years. EMTNs allow an issuer to enter foreign markets more easily to obtain capital. Firms also offer EMTNs continuously, whereas a bond issue, for example, occurs all at once.
An income property is a property bought or developed to earn income through renting, leasing, or price appreciation. An income property can be residential or commercial. Residential income properties are commonly referred to as non-owner occupied. A mortgage for a non-owner occupied property may carry a higher interest rate than an owner-occupied mortgage as lenders often view it as a higher risk.
A euro medium-term note is a medium-term, flexible debt instrument that is traded and issued outside of the United States and Canada. These instruments require fixed payments and are directly issued to the market with maturities that are less than five years. EMTNs allow an issuer to enter foreign markets more easily to obtain capital. Firms also offer EMTNs continuously, whereas a bond issue, for example, occurs all at once.
An income property is a property bought or developed to earn income through renting, leasing, or price appreciation. An income property can be residential or commercial. Residential income properties are commonly referred to as non-owner occupied. A mortgage for a non-owner occupied property may carry a higher interest rate than an owner-occupied mortgage as lenders often view it as a higher risk.