Russell 2000
What is the Russell 2000? The Russell 2000 is a stock market index that tracks the performance of 2,000 US small-cap stocks from the Russell 3000 index. The Russell 2000 index is widely quoted as a benchmark for mutual funds that consist primarily of small-cap stocks. It is also a benchmark for the performance of small-cap...
Open Outcry
What is Open Outcry? Open outcry is a trading method used in futures pits and stock exchanges where traders use verbal and nonverbal signals to communicate. Before the advent of electronic trading, nearly all financial trading was conducted via open outcry. This is the picture people see of stockbrokers on TV shouting and using hand...
Required Rate of Return
What is the Required Rate of Return? The required rate of return (hurdle rate) is the minimum return that an investor is expecting to receive for their investment. Essentially, the required rate is the minimum acceptable compensation for the investment’s level of risk. The required rate of return is a key concept in corporate finance...
Fundamental Analysis
What is Fundamental Analysis? In accounting and finance, fundamental analysis is a method of assessing the intrinsic value of a security by analyzing various macroeconomic and microeconomic factors. The ultimate goal of fundamental analysis is to quantify the intrinsic value of a security. The security’s intrinsic value can then be compared to its current market...
Commodities
What are Commodities? Commodities are another class of assets, just like stocks and bonds. Most commodities are products that come from the earth that possess uniform quality, are produced in large quantities, and are produced by many different producers. Major commodities include cotton, oil, gas, corn, wheat, oranges, gold, and uranium. Basically, they are the...
