Investment Investment Absolute Return refers to investment performance regardless of market performance. Absolute Return strategies aim to product returns independent of traditional performance benchmark such as the S&P 500 index. Absolute Return strategies aim to produce positive returns in both bull and bear markets. ...more on Wikipedia about "Absolute return"
The U.S. Securities and Exchange Commission will allow only accredited investors to invest in certain risky, high-yield investments. This accredited investor can be an organization such as a business or retirement plan, or rich individuals. For an individual to be considered a accredited investor he must have a net worth of at least one million US dollars or have made at least $200,000 dollars each year for the last two years ($300,000 with his spouse if married) and have the expectation to make the same amount this year. This rule came into effect in 1933 by way of the Securities Act of 1933. ...more on Wikipedia about "Accredited investor"
Active Risk refers to that segment of risk in an investment portfolio that is due to active management decisions made by the portfolio manager. It does not include any risk (return) that is merely a function of the market’s movement. In addition to risk (return) from specific stock selection or industry and factor ‘bets’, it can also include risk (return) from market timing decisions. A portfolio’s active risk, then, is defined as the annualized standard deviation of the monthly difference between portfolio return and benchmark return. Thus, an active risk of x per cent would mean that approximately 2/3rd of the portfolio’s returns (one standard deviation from mean) can be expected to fall between +x and -x per cent of the mean excess return. It may be calculated as a realised, or ex post number (derived from the actual returns of a varying portfolio) or as a forward, ex ante, or predicted, number (usually based on a multifactor model defining the co-variance relationships between each pair of securities in the current portfolio). Active risk is normally called tracking error in Europe. It should be noted that there is no necessary or stable relationship between ex ante and ex post tracking error. Furthermore, while tracking error measures the standard deviation of active returns, it does not measure any systematic trend in those returns. ...more on Wikipedia about "Active Risk"
Alpha is a risk-adjusted measure of the so-called "excess return" on an investment. It is a common measure of assessing active manager's performance. ...more on Wikipedia about "Alpha (Investment)"
The term Amateur investors is often quoted in the UK press as a term of derision, indicating those who invest blindly or influenced by romantic notions rather than hard facts. ...more on Wikipedia about "Amateur investors"
Betting arbitrage is a particular case of arbitrage arising on betting markets due to either bookmakers' different opinions on event outcomes or plain errors. By placing one bet per each outcome with different betting companies, the bettor can make a profit. ...more on Wikipedia about "Arbitrage betting"
Asset Allocation is a concept of determining and maintaining a plan of investment. ...more on Wikipedia about "Asset allocation"
An asset price crash is a sudden and usually unexpected fall in the price of a particular asset class. Crashes usually follow asset price inflations. Examples of asset price crashes include Danish tulips in the 1600s, Japanese metropolitan real estate and stocks in the early 1990s, and internet stocks in 2001. ...more on Wikipedia about "Asset price crash"
Assets under management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to guage how much money they are managing. Many financial services companies use this as a measure of success and comparison against their competitors; in lieu of revenue or total revenue they use total ‘assets under management’. ...more on Wikipedia about "Assets under management"
The Beardstown Ladies were an investment club of retired grandmothers in Beardstown, Illinois. ...more on Wikipedia about "Beardstown Ladies"
Bert Whitehead is a fee-only financial advisor and author who invented what has become known as the " Cambridge System" methodology of working with clients, taxes, and investments. He is a prominent member of the National Association of Personal Financial Advisors, or NAPFA. ...more on Wikipedia about "Bert Whitehead"
Buy and hold is a long term investment strategy based on the concept that in the long run financial markets give a good rate of return despite periods of volatility or decline. This viewpoint also holds that market timing, i.e. the concept that one can enter the market on the lows and sell on the highs, does not work or does not work for small investors so it is better to simply buy and hold. ...more on Wikipedia about "Buy and hold"
The phrase buy-to-let can refer either to the investment strategy of buying a residential property to be let for profit; or to the a particular category of mortgage used to purchase a property for letting. ...more on Wikipedia about "Buy to let"
A Child Trust Fund (CTF) is a long-term savings and investment account for children in the United Kingdom. The UK Government has introduced the Child Trust Fund with the aim of ensuring every child has savings at the age of 18, helping children get into the habit of saving whilst teaching them the benefits of saving and helping them understand personal finance. ...more on Wikipedia about "Child Trust Fund"
A collective investment scheme is a way of investing money with other people to participate in a wider range of investments than may be feasible for an individual investor and to share the costs of doing so. ...more on Wikipedia about "Collective investment scheme"
Compulsory Superannuation is a pension scheme where Australian employers are required by law to a pay a proportion of employee's salaries and wages (currently nine percent) into a superannuation fund, which can be accessed when the employee retires. ...more on Wikipedia about "Compulsory Superannuation in Australia"
In investing, developed markets are those countries that are thought to be the most developed and therefore less risky. ...more on Wikipedia about "Developed market"
In finance and economics, divestment or divestiture is the reduction of some kind of asset, for either financial or social goals. A divestment is the opposite of an investment. ...more on Wikipedia about "Divestment"
The term emerging markets is commonly used to describe business and market activity in industrializing or emerging regions of the world. It is sometimes loosely used as a replacement for emerging economies, but really signifies a business phenomenon that is not fully described by or constrained to geography or economic strength; such countries are considered to be in a transitional phase between developing and developed status. Examples of emerging markets include China, India, South Korea, Brazil, Malaysia, countries in Eastern Europe, and parts of Africa. ...more on Wikipedia about "Emerging markets"
The Enterprise Investment Scheme (EIS) is a series of tax reliefs designed to encourage investments in small unquoted companies carrying on a qualifying trade in the United Kingdom. ...more on Wikipedia about "Enterprise Investment Scheme"
Exchange-traded funds (or ETFs) are open-ended collective investment schemes, traded as shares on most global stock exchanges. ...more on Wikipedia about "Exchange-traded fund"
Please note the spelling financial adviser (common in Britain) is adopted above financial advisor (common in the US) for the purposes of this article. ...more on Wikipedia about "Financial adviser"
Foreign affiliate trade statistics (FATS) Statistics, also known as transnational corporation data details the operations of foreign direct investment-based enterprises, including sales, expenditures, profits, value-added, inter- and intra-firm trade, exports and imports; An economic indicator for Mode 3 of the GATS Four Modes of Supply ...more on Wikipedia about "Foreign Affiliate Trade Statistics"
Growth investing is a style of investment strategy. Those who follow this style, known as growth investors, invest in companies that exhibit signs of above-average growth, even if the share price appears expensive in terms of metrics such as price-to-earning or price-to-book ratios. In typical usage, the term "growth investing" contrasts with the strategy known as value investing. However, some notable investors such as Warren Buffett have stated that there is no theoretical difference between the concepts of value and growth when considering ("Growth and Value Investing are joined at the hip"). ...more on Wikipedia about "Growth investing"
An ICVC or Investment Company with Variable Capital is a type of open ended collective investment formed as a corporation under the Open-Ended Investment Companies Regulations. As an open-ended company the manager must create shares when money is invested and redeem shares as requested by shareholders. ...more on Wikipedia about "ICVC" shortopedia - Go in quickly. Investment
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