Markets include brokers, dealers, and exchange markets. The different types of markets allow for different trading characteristics, as outlined in this guide.| Corporate Finance Institute
Systemic risk can be defined as the risk associated with the collapse or failure of a company, industry, financial institution, or an entire economy.| Corporate Finance Institute
Systematic risk is that part of the total risk that is caused by factors beyond the control of a specific company or individual.| Corporate Finance Institute
In investing, risk and return are highly correlated. Increased potential returns on investment usually go hand-in-hand with increased risk.| Corporate Finance Institute
Portfolio managers manage investment portfolios using a six-step portfolio management process. Learn exactly what does a portfolio manager do in this guide.| Corporate Finance Institute
Hedging arrangement refers to an investment whose aim is to reduce the level of future risks in the event of an adverse price movement of an asset.| Corporate Finance Institute
The risk-free rate of return is the interest rate an investor can expect to earn on an investment that carries zero risk.| Corporate Finance Institute
An option is a derivative contract that gives the holder the right, but not the obligation, to buy or sell an asset by a certain date at a specified price.| Corporate Finance Institute
Junk Bonds, also known as high-yield bonds, are bonds that are rated below investment grade by the big three rating agencies| Corporate Finance Institute
Investment horizon is a term used to identify the length of time an investor is aiming to maintain their portfolio before selling their securities for a profit.| Corporate Finance Institute
The Capital Asset Pricing Model (CAPM) is a model that describes the relationship between expected return and risk of a security.| Corporate Finance Institute