Trust
What is a Trust? A trust refers to a legally binding relationship in which one party, known as the trustor, gives another party, known as the trustee, the lawful right of property or assets that must be kept and used solely for the third party’s benefit, referred to as the “beneficiary.” When a trust is...
Santa Claus Rally
What is the Santa Claus Rally? The Santa Claus rally is used to describe the tendency for the stock market to rise in the last five trading days of the current calendar year and the first two trading days of the new year. Understanding the Santa Claus Rally The Santa Claus rally was first defined...
Regret Theory
What is Regret Theory? Regret theory, studied in behavioral finance, is the concept that investors will feel regret if they make a wrong decision and thus will consider this anticipated regret when making investment decisions. Regret theory can adversely affect an investor’s rational behavior, either dissuading them from acting or motivating them to act. As...
Rational Behavior
What is Rational Behavior? Rational behavior is used to describe a decision-making process that results in the optimal level of benefit, or alternatively, the maximum amount of utility. Individuals who exhibit rational behavior make decisions that provide them with the highest amount of personal satisfaction. Understanding Rational Behavior Rational behavior is the underlying assumption of...
Meme Stock
What is a Meme Stock? A meme stock is a stock that is highly popular among retail investors on social media platforms such as Reddit, Stocktwits, Twitter, and Facebook. Understanding a Meme Stock Meme stocks are stocks with a compelling narrative that are hyped up and popularized by retail investors on social media platforms. The...
