Monte Carlo Simulation
What is Monte Carlo Simulation? Monte Carlo Simulation is a statistical method applied in financial modeling where the probability of different outcomes in a problem cannot be simply solved due to the interference of a random variable. The simulation relies on the repetition of random samples to achieve numerical results. It can be used to...
National Association of Investors Corporation (NAIC)
What is the National Association of Investors Corporation (NAIC)? The National Association of Investors Corporation (NAIC) was first founded in 1951 as the National Association of Investment Clubs. Today, the NAIC conducts its business as BetterInvesting. The NAIC works as a sort of school/think tank. It offers broad investment advice, educational information, and support that...
National Association of Securities Dealers (NASD)
What is the National Association of Securities Dealers (NASD)? The National Association of Securities Dealers (NASD) was a regulatory body responsible for overseeing the securities industry. It was tasked with both the operation and regulation of all securities exchange market trades, as well as over-the-counter (OTC) market trades. Founded in 1939 – using...
Scenario Analysis vs Sensitivity Analysis
What is Scenario Analysis vs Sensitivity Analysis? To understand scenario analysis vs sensitivity analysis, one should first understand that investment decisions are based on a set of assumptions and inputs. The lack of certainty in the premises and inputs brings about investment risk. Before making an investment, an individual assesses the magnitude of such risks...
Natural Gas ETF
What is a Natural Gas ETF? Natural gas ETF is defined as an exchange-traded fund that helps investors obtain exposure to returns based on the performance of natural gas. Natural gas ETF falls under the broader universe of commodity ETFs. In theory, commodity ETFs should be easy to create. However, that’s not quite true. No...
