Pump and Dump
What is Pump and Dump? A pump and dump scheme is a type of securities fraud that involves the artificial inflation (“pump”) of the price of a security through false, misleading, or exaggerated statements regarding the security’s price. The fraudster can profit from the price inflation by quickly selling the securities at a high price (“dump”)....
Insider Information
What is Insider Information? Insider information, also called inside information, refers to non-public facts regarding a publicly traded company that can provide a financial advantage in the markets. In other words, insider information is knowledge and information on the operations, products/services pipeline, affairs, financial position, etc., of a company that is not accessible to the...
Dynamic Asset Allocation
What is Dynamic Asset Allocation? Dynamic asset allocation is an investment strategy that involves the frequent adjustment of the weights in a portfolio based on the overall market performance or the performance of certain securities. Under the dynamic allocation strategy, a portfolio manager assesses the current market conditions and the performance of each asset class....
Holding Period Return
What is the Holding Period Return? The Holding Period Return (HPR) is the total return on an asset or investment portfolio over the period for which the asset or portfolio has been held. The holding period return can be realized if the asset or portfolio has been held, or expected if an investor only anticipates...
Lock-up Agreement
What is a Lock-Up Agreement? A lock-up agreement refers to a legally binding contract made between the insiders and underwriters of a company during its initial public offering (IPO) that prohibits them from selling any of their shares for a set period of time. These individuals may include venture capitalists, company directors, managers, executives, employees, and...
