Sample Selection Bias
What is Sample Selection Bias? Sample selection bias is the bias that results from the failure to ensure the proper randomization of a population sample. The flaws of the sample selection process lead to situations where some groups or individuals in the population are less likely to be included in the sample. The presence of...
Market-on-Close (MOC) Order
What is a Market-on-Close (MOC) Order? A market-on-close (MOC) order refers to a market order that is not subject to a limit. Traders execute market-on-close orders as close to the closing price of a stock as possible. It is placed either at the exact time of the market closing or slightly after the market closes....
Audit Committee
What is an Audit Committee? An audit committee is a sub-group of a company’s board of directors responsible for the oversight of the financial reporting and disclosure process. To be successful, the audit committee should understand the organization’s processes and internal controls. The audit committee must coordinate with the management team, independent auditor, and internal...
NAV Return
What is NAV Return? NAV return, or net asset value return, is a performance measurement for an entity’s assets minus liabilities. NAV return is typically used to measure the performance of mutual funds, open-end funds, or exchange traded funds (ETFs) because shares of the funds are typically purchased at their NAV. Net asset value return...
Monopolistic Competition
What is Monopolistic Competition? Monopolistic competition is a type of market structure where many companies are present in an industry, and they produce similar but differentiated products. None of the companies enjoys a monopoly, and each company operates independently without regard to the actions of other companies. The market structure is a form of imperfect...
