Fractional Share
What is a Fractional Share? A fractional share is when a full single share is split. For example, fractional shares occur during stock splits, dividend reinvestment plans, or various other actions that may result in a partial share of ownership. Generally speaking, the stock market does not offer partial shares, and while some do, it...
Disclosure
What is Disclosure? Disclosure, in financial terms, basically refers to the action of making all relevant information about a business available to the public in a timely manner. What Does “Relevant Information” Mean? Relevant information about a business refers to any and every piece of information, including facts, figures, dates, procedures, innovations, and so on,...
Financial Crisis
What is a Financial Crisis? A financial crisis is defined as any situation where one or more significant financial assets – such as stocks, real estate, or oil – suddenly (and usually unexpectedly) loses a substantial amount of their nominal value. Common examples of a financial crisis include financial market crashes – either widespread or...
Socially Responsible Investment (SRI)
What is Socially Responsible Investment (SRI)? Socially responsible investment, or SRI, is a strategy that considers not only the financial returns from an investment but also its impact on environmental, ethical or social change. Identifying which ventures to put their hard-earned money into can be difficult for potential investors. It is why such investors consider...
Fisher Effect
What is the Fisher Effect? The Fisher Effect refers to the relationship between nominal interest rates, real interest rates, and inflation expectations. The relationship was first described by American economist Irving Fisher in 1930. The relationship is described by the following equation: (1+i) = (1+r) * (1+π) Where: i = Nominal Interest Rate r =...
