Indexing
What is Indexing? Indexing is a passive investment strategy where you construct a portfolio to track the performance of a market index. It is commonly done with the S&P 500 Index, where investors try to mimic the performance of the index. Indexing also refers to metrics used to gauge the performance of an economic activity....
Accredited Investor
What is an Accredited Investor? An accredited investor refers to an individual or institutional investor who has met certain requirements set by the U.S. Securities and Exchange Commission (SEC). Accredited investors are allowed to purchase securities that are not available to other investors and that have not been registered with any regulatory authority. The SEC...
After Hours Trading
What is After Hours Trading? After hours trading refers to the time outside regular trading hours when an investor can buy and sell securities. The main exchanges in the United States, NASDAQ and NYSE, hold standard trading sessions that start at 9:30 a.m. and end at 4:00 p.m. After the end of regular trading, the...
Presidential Cycle
What is the Presidential Cycle? The Presidential Cycle is a theory that suggests that the United States stock market experiences a decline in the first year a new president takes office. The theory was first developed by Yale Hirsch, a stock market historian. It suggests that the US presidential elections exert a predictable effect on...
Mean-Variance Analysis
What is Mean-Variance Analysis? Mean-Variance Analysis is a technique that investors use to make decisions about financial instruments to invest in, based on the amount of risk that they are willing to accept (risk tolerance). Ideally, investors expect to earn higher returns when they invest in riskier assets. When measuring the level of risk, investors...
