Par Bond
What is a Par Bond? A par bond refers to a bond that currently trades at its face value. The bond comes with a coupon rate that is identical to the market interest rate. Understanding a Par Bond A bond’s coupon rate is the rate of interest paid by the bond issuers on the bond’s...
Dogs of the Dow
What are the Dogs of the Dow? The Dogs of the Dow refers to a stock-picking strategy that uses the ten highest dividend-yielding stocks from the Dow Jones Industrial Average (DJIA) each year. The Dogs of the Dow strategy, a long-term investment strategy, was popularized by American money manager and author Michael B. O’Higgins in...
Market Efficiency
What is Market Efficiency? Market efficiency is a relatively broad term and can refer to any metric that measures information dispersion in a market. An efficient market is one where all information is transmitted perfectly (everyone receives the information), completely (everyone receives the entire information), instantly (everyone receives the information at once), and for no...
Best Efforts
What is “Best Efforts”? In a securities offering, “best efforts” refers to a contractual term in which the underwriter promises to do the best it can to sell as much of a securities offering as possible. Understanding “Best Efforts” In a best efforts offering, not all securities are required to be sold. Generally, the underwriter...
Relative Price Strength (RPS)
What is Relative Price Strength (RPS)? Relative price strength (RPS), also known as relative strength, is the ratio between the price trend of a stock price compared to the price trend of the market. RPS is commonly used in technical analysis and is not to be confused with relative price index. Formula for Relative Price...
