Capitulation
What is Capitulation? Capitulation refers to a situation in which investors/traders liquidate their existing long stock position during an extended stock price decline. It can be viewed as the moment in which investors/traders lose hope in their long position and accept losses. Understanding Capitulation Capitulation, derived from the military, means to give up or surrender....
Fiduciary
Who is a Fiduciary? A fiduciary is an individual (or business) that pledges to prioritize the beneficiary’s interest by avoiding any conflicts of interest that arise in the duty of good faith, trust, and loyalty towards the beneficiary. Fiduciary Relationships Fiduciary relationships are characterized by the beneficiary’s vulnerability and the fiduciary’s knowledge and control. Fiduciaries...
Prime Brokerage
What is Prime Brokerage? Prime brokerage is a set of services offered by investment banks and other large financial institutions to hedge funds and other investment clients. The clients need such services when borrowing securities or cash for the purpose of netting to allow a specific asset to achieve a higher return. What is Netting?...
Repurchase Agreement (Repo)
What is a Repurchase Agreement (Repo)? A repurchase agreement (“repo”), also known as a sale-and-repurchase agreement, is an agreement involving the sale and subsequent repossession of the same security at a future date at a higher price. In simple terms, it is an exchange of a security (which acts as collateral) for cash. Repurchase agreements...
Elliott Wave Theory
What is the Elliott Wave Theory? The Elliott Wave Theory is a technical analysis technique developed by American accountant and author Ralph Nelson Elliott in the 1930s. Elliott studied several years of stock market data across various indices and was the first to predict a stock market bottom in 1935. Since then, the theory’s become...
