Index Fund vs Mutual Fund
Potential investors tend to know about Index Fund vs Mutual Fund. The main difference between Index fund and Mutual fund is; Index funds invest in a specific list of...
Common Stock vs Preferred Stock
Potential investors who are looking to acquire a stake or ownership; search about common stock vs preferred stock. There are many differences between preferred stock and common stock. The...
Investment vs Gambling
Investment vs gambling. Most of us have heard the term, “Investing in the stock market is just like gambling at a casino”? What do you think? Though, investing and gambling...
Investment vs Speculation | 7 key Difference
Investment vs speculation. The primary difference between investment and speculation is the amount of risk undertaken. High-risk speculation is typically akin to gambling, whereas lower-risk investing uses a basis...
What is Investment? Objectives, Types and Categories
An investment is an asset or item acquired with the goal of generating income or appreciation. Appreciation refers to an increase in the value of an asset over time. When an individual...
Difference between Business Risk and Financial Risk
Business Risk VS Financial Risk. Financial risk refers to a company’s ability to manage its debt and financial leverage, while business risk refers to the company’s ability to generate...
What is Unsystematic Risk?
Unsystematic risk, also known as diversifiable risk or non-systematic risk, is the danger that relates to a particular security or a portfolio of securities. What is Unsystematic Risk? Unsystematic...
What is Systematic Risk? Types, Formula, Example
Systematic risk refers to the risk inherent to the entire market or market segment. Systematic risk, also known as “undiversifiable risk,” “volatility” or “market risk,” affects the overall market, not...
What is Correlation Coefficient in Finance?
In finance and investment industries; correlation coefficient is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced...
What is Covariance in Finance and Investment Management?
Covariance calculates the directional relationship between two assets’ returns. A positive covariance means that the returns of assets move together while a negative covariance means that they move in...