Greater Fool Theory
What is the Greater Fool Theory? The Greater Fool Theory simply states that there will always be a “greater fool” in the market who will be ready to pay a price based on higher valuation for an already overvalued security. Markets are affected by a lot of irrational beliefs and expectations of market participants. Based...
Options Case Study – Long Call
Options Case Study To study the complex nature and interactions between options and the underlying asset, we present an options case study. It’s much easier to learn the use and payouts of options when we see it in practice. Firstly, however, let us briefly discuss the characteristics of the two main options. Options Case Study:...
Bond Issuers
Bond Issuers Bonds are issued as forms of tradable debt. The bond issuer is the borrower, while the bondholder or purchaser is the lender. At the maturity of the bond, bond issuers repay the bondholder the principal value. There are many types of bond issuers: Firms Governments Supranational Entities Regions and Municipalities Projects and SPVs...
Types of Markets - Dealers, Brokers, Exchanges
Types of Markets Capital markets refer to marketplaces where investors buy and sell debt and equity, allowing businesses to access the money they need to fund new products and services or grow their operations. Explore the following roles in capital markets: Dealers (Over-the-counter) Exchanges Brokers To learn more, launch our online finance courses now! Dealer...
Trade Orders - Trading
What are Trade Orders? Trade orders refer to the different types of orders that can be placed on trading exchanges for financial assets, such as stocks or futures contracts. The order-driven style of trading mechanisms matches buyers and sellers who have matching order criteria. In other words, a buyer with a buy price matching the...
