Risk Aversion
What is Risk Aversion? Risk aversion refers to the tendency of an economic agent to strictly prefer certainty to uncertainty. An economic agent exhibiting risk aversion is said to be risk averse. Formally, a risk averse agent strictly prefers the expected value of a gamble to the gamble itself. What is a Gamble? A gamble...
Return on Investment: Formula, Meaning, and How to Calculate It
Every major financial choice begins with a simple question: Does this investment create value? Understanding ROI equips you to compare options, assess potential outcomes, and allocate capital with confidence. In this guide, you’ll learn how to determine ROI by analyzing scenarios that account for initial cost, risk appetite, and an investment’s projected performance. Join over...
Unicorn
What is a Unicorn? In finance, “unicorn” is a term that describes a privately-owned startup with a valuation of over $1 billion. The term was introduced by venture capital investor, Aileen Lee, in 2013 to describe rare tech startups that were valued at more than $1 billion. The phenomenon of unicorns is quite controversial. Although...
REIT vs REOC
What is REIT vs REOC? As an investor, it is important to know the differences between REIT vs REOC. A real estate investment trust (REIT) and a real estate operating company (REOC) are types of real estate companies that trade in a public exchange market but come with functional and operating differences. A REIT is a...
Risk Factors of Investing in REITs
What are the Risk Factors of Investing in REITs? In this article, learn about the different risk factors of investing in REITs. Real estate investment trusts (REITs) refer to investment equities that investors invest in to increase the returns on their portfolio. REITs own and manage various real estate properties such as residential apartments, office...
