Market Depth
What is Market Depth? Market depth refers to the ability of the market to sustain a substantially larger order without making an impact on the security’s market price. Usually, while calculating market depth, trading within one particular security is considered. Within the trades, the total breadth and the level of open orders made are considered....
Market Basket
What is Market Basket? The term market basket refers to a bundle or group of products that can be indicators of the overall performance of a specific industry, sector, or market segment. Market baskets can be classified such that they enable traders and investors to track the performance of a given sector. The most common...
Hoarding
What is Hoarding? In terms of finance, hoarding is the practice of holding or piling up of assets, namely money, goods, or securities. Preparation for future events causes individuals or companies to save up such assets. However, hoarding occurs when the act of saving goes above and beyond what is needed for immediate profit, covering...
Subjective Probability
What is Subjective Probability? Subjective probability refers to the probability of something happening based on an individual’s own experience or personal judgment. A subjective probability is not based on market data or historical information and differs from person to person. In other words, it is created from the opinion of an individual and is not...
Attribution Analysis
What is Attribution Analysis? Attribution analysis, also known as “return attribution” or “performance attribution,” is an evaluation tool used to explain and analyze a portfolio’s performance against a particular benchmark. It is used to identify sources of excess returns from a firm or fund manager’s active investment decisions. Components of Attribution Analysis Attribution analysis compares...
