What is Commercial Real Estate? Commercial real estate are buildings or land that generate income, and while the definition varies among different countries, the core offering remains the same. Classifications of Commercial Real Estate Broadly, commercial real estate can be classified into: 1. Multi-family real estate Multi-family real estate is housing with multiple units, ideally…
What is a Black Market? A black market refers to a marketplace or system of exchange that subverts official government regulations. Often referred to as the underground economy, it is economic transactions that are illegal or are non-compliant behaviors within a set of rules or laws. A black market is distinct from a grey market,…
What is Cashback? Cashback is a credit card perk where a percentage of eligible purchases made on the credit card is paid back to the cardholder. The concept of cashback gained mainstream traction in 1986 when Discover Financial Services, a division of Morgan Stanley, launched a credit card with no annual fees, a higher-than-normal credit limit, and…
What are Baby Bonds? As the name suggests, baby bonds are fixed-income securities with the size characteristics of babies in the sense that their par values are small. Baby bonds have a par value of less than $1,000 but typically range in values between $25 and $500. A sample baby bond from New Mountain Finance…
What is Trading Psychology? Trading psychology refers to the mental state and emotions of a trader that determines the success or failure of a trade. It represents the aspects of a trader’s behavior and characteristics that influence the actions they take when trading securities. While other aspects – such as experience and trading knowledge –…
What is a Trading Session? A trading session refers to the active trading hours of an asset or a given locale. Usually, different markets follow different trading hours, and a single trading day of a market is the trading session referenced by investors in a particular market. The different characteristics of the markets for stocks,…
What is a Trading Strategy? A trading strategy is a fixed plan for buying and selling securities designed to generate a profitable return on the investments. It should be objective, consistent, quantifiable, and verifiable. The strategy is founded on fundamental analysis or technical analysis so that the inevitable systemic risks cannot lead to catastrophic effects…
What is Trading Software? Trading software are computer programs that traders use to trade and analyze financial products such as currencies, stocks, bonds, and derivatives over a network with a financial intermediary, which can be a broker, market maker, or stock exchange. Investors can use trading software to place trades from any location. Trading software…
What is a Trading Range? A trading range is the vertical price movements between a resistant ceiling and a support floor for a period of time. Trading range often occurs in all financial markets in which the price resistance is provided by the top of a security’s trading range, while the price support is offered…
What is a Trading Partner Agreement? A trading partner agreement is a contract that binds two parties to engage in a commercial transaction. It stipulates terms of trade, including how partners will interact, fees or duties, and the general terms and conditions. Trading partner agreements are common in healthcare and credit reporting firms. Understanding Trading…
