Finance & Investment

Banking, capital markets, portfolios, credit and financing options for businesses and investors.

Buyer and seller exchanging a bill of exchange near a bank illustrating a commercial bill
Finance & Investment

Quick answer: A commercial bill is a bill of exchange drawn by a seller on a buyer for goods sold

Investor weighing a vault, coins and stock chart, illustrating factors in investment decisions
Finance & Investment

Quick answer: Investors decide where to put money by weighing expected return and yield against risk and safety of capital,

Investor rebalancing a portfolio pie chart of stocks, bonds and gold, illustrating portfolio revision
Finance & Investment

Quick answer: Portfolio revision means changing the mix of securities in a portfolio to keep it in line with the

Investor reading five economic risk gauges beside a stock chart
Finance & Investment

Quick answer: Arbitrage Pricing Theory, developed by Stephen Ross in 1976, says an asset’s expected return depends on its sensitivity

Upward return line rising from a risk-free base with an analyst calculating
Finance & Investment

Quick answer: The Capital Asset Pricing Model (CAPM), developed by William Sharpe, John Lintner and Jan Mossin, says an asset’s

Investor balancing a basket of assets along an efficient frontier curve
Finance & Investment

Quick answer: Modern portfolio theory, developed by Harry Markowitz in 1952, assumes that asset returns are normally distributed with stable

Investor choosing between bond certificates from government, corporate and city issuers
Finance & Investment

Quick answer: Bonds can be grouped by issuer: government, municipal, corporate and foreign or Euro bonds; and by features: fixed-income,

Analyst comparing industry towers with charts and a magnifying glass, illustrating industry analysis
Finance & Investment

Quick answer: Industry analysis looks at whether an industry is worth investing in. The key factors are past sales and

Investor adding coins to a diversified jar managed by a fund manager
Finance & Investment

Quick answer: Mutual funds give small investors professional management, diversification, research, liquidity, convenience, low minimum investments (SIPs from as little

Investor choosing between jars of stocks, bonds, gold and property
Finance & Investment

Quick answer: The main types of mutual funds are equity funds (growth, value, dividend, index, sector and diversified), debt or