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Terms and Concepts Videos


Finance: How Are Risks and Rewards Related?

How are risk and reward related? Take more risk, expect more reward. A lottery ticket might be worth a billion dollars, but if the odds are one in ten billion that you win, then it's a bad bet, ten times over.


Accounting Videos 351 videos

Finance: What is Collateralized Mortgage Obligation (CMO)?
65 Views

What is Collateralized Mortgage Obligation (CMO)? A CMO is a mortgage bond that consists of a large number of different individual mortgages bundle...

Finance: What are Secured Bonds v Unsecured Bonds, and what is Non-Recourse Debt: Debentures (Subordinated and Senior)?
68 Views

When a bond is secured, it means it's protected, i.e. there are assets that would be forfeited if repayment is not made. When it's unsecured... it'...

Finance: What is Counterparty Risk?
9 Views

What is Counterparty Risk? Counterparty risk is the risk to either party within a transaction that the other will not or be unable to abide by the...

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Banking Videos 367 videos

Finance: What is Collateralized Mortgage Obligation (CMO)?
65 Views

What is Collateralized Mortgage Obligation (CMO)? A CMO is a mortgage bond that consists of a large number of different individual mortgages bundle...

Finance: What are Secured Bonds v Unsecured Bonds, and what is Non-Recourse Debt: Debentures (Subordinated and Senior)?
68 Views

When a bond is secured, it means it's protected, i.e. there are assets that would be forfeited if repayment is not made. When it's unsecured... it'...

Finance: What is Counterparty Risk?
9 Views

What is Counterparty Risk? Counterparty risk is the risk to either party within a transaction that the other will not or be unable to abide by the...

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Board of Directors Videos 111 videos

Finance: What are Passive Investing and Passive Investors?
2 Views

What are Passive Investing and Passive Investors? Passive investing and passive investors are ones who opt to ride the market out over the long ter...

Finance: What are Secured Bonds v Unsecured Bonds, and what is Non-Recourse Debt: Debentures (Subordinated and Senior)?
68 Views

When a bond is secured, it means it's protected, i.e. there are assets that would be forfeited if repayment is not made. When it's unsecured... it'...

Finance: What is Power Of Attorney (Trading Authorization)?
2 Views

Power of attorney refers to the authorization to conduct business on legal and financial matters on behalf of another party. So...choose wisely.

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Bonds Videos 389 videos

Finance: What is Collateralized Mortgage Obligation (CMO)?
65 Views

What is Collateralized Mortgage Obligation (CMO)? A CMO is a mortgage bond that consists of a large number of different individual mortgages bundle...

Finance: What are Kickbacks?
1 Views

What are kickbacks? Well, they're things we don't get for working at Shmoop, that's for sure. Hit play to find out more.

Finance: What are At the Money, In the Money, Deep in the Money, and Out of the Money?
5 Views

What are At the Money, In the Money, Deep in the Money, and Out of the Money? At the money happens when a stock is trading at an option’s strike...

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Careers Videos 112 videos

Finance: What is the Fast Market Rule?
11 Views

What is the Fast Market Rule? The fast market rule is something that is used in the U.K. to keep the market under control when any sort of crash ha...

Finance: What is the Dow Jones Industrial Average?
2710 Views

What is the Dow Jones Industrial Average? The Dow Jones Industrial Average is usually just called the Dow. It’s an average of 30 of the most well...

Finance: What is Arbitrage?
22228 Views

What is Arbitrage? Arbitrage is a trading strategy used to make risk-free money. The investor buys a security in one market and sells it in another...

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Charts Videos 93 videos

Finance: What is a secular trend?
13 Views

A secular trend is something that changes over time, but is not necessarily an element in a repeated, continuing cycle.

Finance: What is the Advance Decline Ratio?
14 Views

What is the Advance Decline Ratio? The advance decline ratio is used to determine how the market performed on a given day. It does this by comparin...

Finance: What does "Breaking the Buck" Mean?
7 Views

What does “Breaking the Buck” mean? Breaking the buck means that a money market fund’s value has dropped to less than $1. This happens becaus...

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Company Management Videos 260 videos

Finance: What is After Hours Trading?
1 Views

What is After Hours Trading/Extended Trading? After hours trading describes any trades made after the market closes or before the market opens. Bec...

Finance: What is a thin market?
13 Views

What is a thin market, and has it been on Jenny Craig recently?

Finance: What is Above Full Employment Equilibrium?
20 Views

What is Above Full Employment Equilibrium? Above Full Employment Equilibrium happens when an economy is basically doing more than it realistically...

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Company Valuation Videos 175 videos

Finance: What is Volatility?
77 Views

What is volatility? In the world of investing, volatility basically means riskiness. It looks at the returns for stocks or indexes, and if they are...

Finance: What is Alpha?
11 Views

What is Alpha? Alpha is an investing term that describes the success of an investment. It looks at the investment’s ability to beat beta (or mark...

Finance: What is Beta?
22 Views

What is Beta? Beta is a figure associated with public companies that measures how risky the company’s stock is in comparison to the market as a w...

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Credit Videos 265 videos

Finance: What does "Breaking the Buck" Mean?
7 Views

What does “Breaking the Buck” mean? Breaking the buck means that a money market fund’s value has dropped to less than $1. This happens becaus...

Finance: What is Collateralized Mortgage Obligation (CMO)?
65 Views

What is Collateralized Mortgage Obligation (CMO)? A CMO is a mortgage bond that consists of a large number of different individual mortgages bundle...

Finance: What is Above Full Employment Equilibrium?
20 Views

What is Above Full Employment Equilibrium? Above Full Employment Equilibrium happens when an economy is basically doing more than it realistically...

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Derivatives Videos 155 videos

Finance: What is speculation?
6 Views

What is speculation? Speculation refers to a high risk, high reward scenario in investing. When an investor engages in a speculation, they take on...

Finance: What is After Hours Trading?
1 Views

What is After Hours Trading/Extended Trading? After hours trading describes any trades made after the market closes or before the market opens. Bec...

Finance: What is Collateralized Mortgage Obligation (CMO)?
65 Views

What is Collateralized Mortgage Obligation (CMO)? A CMO is a mortgage bond that consists of a large number of different individual mortgages bundle...

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Econ Videos 216 videos

Finance: What does "Breaking the Buck" Mean?
7 Views

What does “Breaking the Buck” mean? Breaking the buck means that a money market fund’s value has dropped to less than $1. This happens becaus...

Finance: What is the Tax Reform Act of 1986?
4 Views

What was the Tax Reform Act of 1986? Hit play to find out.

Finance: What is Disinflation?
5 Views

What is Disinflation? Disinflation is a term used for an interim slowdown of inflation rate. For example, a reduction of inflation growth from 3.5%...

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Education Videos 108 videos

Finance: What is After Hours Trading?
1 Views

What is After Hours Trading/Extended Trading? After hours trading describes any trades made after the market closes or before the market opens. Bec...

Finance: What is the Dow Jones Industrial Average?
2710 Views

What is the Dow Jones Industrial Average? The Dow Jones Industrial Average is usually just called the Dow. It’s an average of 30 of the most well...

Finance: What Do You Need to Retire?
209 Views

What do you need to retire? Retirement - think: 401k, pension fund, IRA, roth IRA, etc. All of these savings socked away while you worked hard are...

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Entrepreneur Videos 67 videos

Finance: What is a High Alpha Investor?
5 Views

What is a High Alpha Investor? A high alpha investor invests in securities with alpha values of 1 or higher. This means that the mutual fund or sto...

Finance: What are Angel Investors and Seed Funds?
8 Views

What are Angel Investors and Seed Funds? Angel investors provide the funds for small start-ups. They are usually family and friends (not institutio...

Finance: How Do You Get Your Startup Funded?
96 Views

How do you get a startup funded? Depends if we're talking about a tech startup, or a non-tech startup. If you've got a promising, budding tech comp...

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Ethics/Morals Videos 193 videos

Finance: What is Selling Away?
8 Views

Selling away is the practice of selling securities that aren't under the seller's auspices to sell.

Finance: How Are Risks and Rewards Related?
589 Views

How are risk and reward related? Take more risk, expect more reward. A lottery ticket might be worth a billion dollars, but if the odds are one in...

Finance: What is Counterparty Risk?
9 Views

What is Counterparty Risk? Counterparty risk is the risk to either party within a transaction that the other will not or be unable to abide by the...

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Financial Theory Videos 199 videos

Finance: What is a secular trend?
13 Views

A secular trend is something that changes over time, but is not necessarily an element in a repeated, continuing cycle.

Finance: What is the Advance Decline Ratio?
14 Views

What is the Advance Decline Ratio? The advance decline ratio is used to determine how the market performed on a given day. It does this by comparin...

Finance: What is the Dow Theory?
11 Views

What is the Dow Theory? Dow Theory is a collection of indicators and definitions of the types of market signals for indicating a Bull or Bear marke...

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Forex Videos 93 videos

Finance: What is a strong dollar?
3 Views

A strong dollar is one that has earned trust on an international scale. It reflects a reliable currency...at least, more reliable than that of othe...

Finance: Are monopolies evil? Should they be regulated? Should they be illegal?
28 Views

Are monopolies evil? Should they be regulated? Should they be illegal? Monopolies in and of themselves, are neither good nor evil. How they conduct...

Finance: What is a Yankee Bond?
36 Views

What's a yankee bond, and does it stick a feather in its cap and call it macaroni?

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Hedge Funds Videos 9 videos

Finance: What is an Annualized Return?
36 Views

When you buy and sell something for investment purposes, whether it be a stock, artwork, gemstones, a bond, a condominium, you know that once you h...

Finance: What are Insider Trading And the Securities Fraud Enforcement Act Of 1988?
11 Views

What is insider trading and the Securities Fraud Enforcement Act of 1988? It's nothing too complicated, if this minute long video is any indication.

Finance: What is a Chartist?
26 Views

What is a Chartist? A chartist is a trader and/or analyst who relies on technical analysis and charts in order to make decisions for trading the ma...

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Incorporation Videos 104 videos

Finance: What is a Dissident Director?
4 Views

What is a Dissident Director? The Board of Directors of a company usually reaches a consensus the majority of the time in order to decide on polici...

Finance: What is a Safe Harbor?
3 Views

"Safe harbor" refers to the notion that, if you follow a basic set of rules, you cannot be found guilty of a crime or shady dealings.

Finance: What is Contingent Liability?
4 Views

What is Contingent Liability? Contingent liability refers to a possible liability in the future contingent upon some other event being the trigger....

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Index Funds Videos 123 videos

Finance: What is the Dow Theory?
11 Views

What is the Dow Theory? Dow Theory is a collection of indicators and definitions of the types of market signals for indicating a Bull or Bear marke...

Finance: What is Efficient Markets Theory?
141 Views

What is the Efficient Markets Theory? The Efficient Markets Theory says that stocks trade at their fair value all of the time, assuming all informa...

Finance: What is a Fund of Funds?
5 Views

What is a Fund of Funds? A fund of funds is a mutual fund strategy that invests in other funds rather than investing in stocks or bonds. The underl...

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Insurance Videos 162 videos

Finance: What is Market Manipulation?
2 Views

Market manipulation is manipulation of the, uh... market. Like...illegally. Yeah, any sort of "scheme" is probably something you want to avoid.

Finance: What are Secured Bonds v Unsecured Bonds, and what is Non-Recourse Debt: Debentures (Subordinated and Senior)?
68 Views

When a bond is secured, it means it's protected, i.e. there are assets that would be forfeited if repayment is not made. When it's unsecured... it'...

Finance: What is the Investment Company Act of 1940?
129 Views

The Investment Company Act of 1940 regulated and ensured fair dealings in the mutual fund industry.

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International Videos 92 videos

Finance: What is the Advance Decline Ratio?
14 Views

What is the Advance Decline Ratio? The advance decline ratio is used to determine how the market performed on a given day. It does this by comparin...

Finance: What is a strong dollar?
3 Views

A strong dollar is one that has earned trust on an international scale. It reflects a reliable currency...at least, more reliable than that of othe...

Finance: What is the Dow Jones Industrial Average?
2710 Views

What is the Dow Jones Industrial Average? The Dow Jones Industrial Average is usually just called the Dow. It’s an average of 30 of the most well...

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Investing Videos 424 videos

Finance: What is Devaluation?
1 Views

What is Devaluation? The process by which a nation deliberately lowers the value of its currency relative to other international currencies is call...

Finance: What is the Advance Decline Ratio?
14 Views

What is the Advance Decline Ratio? The advance decline ratio is used to determine how the market performed on a given day. It does this by comparin...

Finance: What is speculation?
6 Views

What is speculation? Speculation refers to a high risk, high reward scenario in investing. When an investor engages in a speculation, they take on...

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Managed Funds Videos 236 videos

Finance: What is Efficient Markets Theory?
141 Views

What is the Efficient Markets Theory? The Efficient Markets Theory says that stocks trade at their fair value all of the time, assuming all informa...

Finance: What is a Fund of Funds?
5 Views

What is a Fund of Funds? A fund of funds is a mutual fund strategy that invests in other funds rather than investing in stocks or bonds. The underl...

Finance: What is Collateralized Mortgage Obligation (CMO)?
65 Views

What is Collateralized Mortgage Obligation (CMO)? A CMO is a mortgage bond that consists of a large number of different individual mortgages bundle...

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Mortgage Videos 59 videos

Finance: What is Disinflation?
5 Views

What is Disinflation? Disinflation is a term used for an interim slowdown of inflation rate. For example, a reduction of inflation growth from 3.5%...

Finance: What is Collateralized Mortgage Obligation (CMO)?
65 Views

What is Collateralized Mortgage Obligation (CMO)? A CMO is a mortgage bond that consists of a large number of different individual mortgages bundle...

Finance: What is Above Full Employment Equilibrium?
20 Views

What is Above Full Employment Equilibrium? Above Full Employment Equilibrium happens when an economy is basically doing more than it realistically...

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Muni Bonds Videos 71 videos

Finance: What is maturity?
1 Views

Maturity is, quite simply, the date when a debt becomes due. As for our maturity, well... we're still giggling about the word "due."

Finance: What are Bond Anticipation Notes, Revenue Anticipation Bonds, and Tax Anticipation Notes?
26 Views

What are Bond Anticipation Notes (BANS), Revenue Anticipation Notes (RANS), and Tax Anticipation Notes (TANS)? BANS, RANS and TANS are all short-te...

Finance: What is Term To Maturity?
12 Views

Term to maturity is kind of the life cycle of a bond, but luckily for the bond, it gets to skip puberty.

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Mutual Funds Videos 165 videos

Finance: What is Efficient Markets Theory?
141 Views

What is the Efficient Markets Theory? The Efficient Markets Theory says that stocks trade at their fair value all of the time, assuming all informa...

Finance: What is a Fund of Funds?
5 Views

What is a Fund of Funds? A fund of funds is a mutual fund strategy that invests in other funds rather than investing in stocks or bonds. The underl...

Finance: What is the Russell Index?
4 Views

The Russell Index is a series of indices that tracks the progress of stocks in a given basket. Aw. We were hoping it tracked adorable Jack Russell...

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Regulations Videos 358 videos

Finance: What is the Tax Reform Act of 1986?
4 Views

What was the Tax Reform Act of 1986? Hit play to find out.

Finance: What is Market Manipulation?
2 Views

Market manipulation is manipulation of the, uh... market. Like...illegally. Yeah, any sort of "scheme" is probably something you want to avoid.

Finance: What are Capital Markets?
7 Views

What are Capital Markets? The most often context used for “Capital Markets” is in corporate finance and investment banking, and it refers prima...

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Retirement Videos 84 videos

Finance: What is a redemption charge?
8 Views

A redemption charge is a charge applied when you redeem shares of a mutual fund in a deferred commission purchase structure.

Finance: What is the Tax Reform Act of 1986?
4 Views

What was the Tax Reform Act of 1986? Hit play to find out.

Finance: What are Passive Investing and Passive Investors?
2 Views

What are Passive Investing and Passive Investors? Passive investing and passive investors are ones who opt to ride the market out over the long ter...

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Stocks Videos 415 videos

Finance: What is co-variance?
8 Views

What is covariance? Covariance is the comparison of how assets move in the markets. Positive covariance is when assets move in tandem, such as when...

Finance: What is the Advance Decline Ratio?
14 Views

What is the Advance Decline Ratio? The advance decline ratio is used to determine how the market performed on a given day. It does this by comparin...

Finance: What is speculation?
6 Views

What is speculation? Speculation refers to a high risk, high reward scenario in investing. When an investor engages in a speculation, they take on...

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Tax Videos 256 videos

Finance: What is the Wash Sale Rule?
14 Views

check out some practical examples of inflation. And no, there are no balloon animals in this video. Sorry.

Finance: What is a Dissident Director?
4 Views

What is a Dissident Director? The Board of Directors of a company usually reaches a consensus the majority of the time in order to decide on polici...

Finance: What is a Safe Harbor?
3 Views

"Safe harbor" refers to the notion that, if you follow a basic set of rules, you cannot be found guilty of a crime or shady dealings.

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Tech Videos 99 videos

Finance: What is co-variance?
8 Views

What is covariance? Covariance is the comparison of how assets move in the markets. Positive covariance is when assets move in tandem, such as when...

Finance: What is After Hours Trading?
1 Views

What is After Hours Trading/Extended Trading? After hours trading describes any trades made after the market closes or before the market opens. Bec...

Finance: What is Volatility?
77 Views

What is volatility? In the world of investing, volatility basically means riskiness. It looks at the returns for stocks or indexes, and if they are...

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Wealth Videos 168 videos

Finance: What is a redemption charge?
8 Views

A redemption charge is a charge applied when you redeem shares of a mutual fund in a deferred commission purchase structure.

Finance: What is the Tax Reform Act of 1986?
4 Views

What was the Tax Reform Act of 1986? Hit play to find out.

Finance: What are Passive Investing and Passive Investors?
2 Views

What are Passive Investing and Passive Investors? Passive investing and passive investors are ones who opt to ride the market out over the long ter...

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