Tag Archives: cfalevel1
Bretton Woods Agreement
The Bretton Woods agreement of 1944 is a landmark for a new global monetary system. It replaced the gold standard with the U.S. dollar ...
How is High-Water mark clause used?
Understanding High-Water Mark Clause
High-Water Mark Clause is a concept that’s very crucial to understand in the Hedge Funds domain a...
What are Mutual Funds?
What are Mutual Funds?
Even a small organism like ant eat some part of food, and then keep a part for future. Similarly, we must also ...
Market Orders vs Limit Orders
When an investor has to place an order to buy or sell a stock, there are two elementary options for its execution that are- Market orde...
How does a Market Maker work? | Full Understanding
Who is a Market Maker and what does it mean to ‘Make the Market’?
Within a few taps you can place an order with your brokerage firm to...
What is Pac Man Defense?
Pac Man Defense:
Pac Man Defense is a strategy employed by Target Company in light of facing hostile takeover situation. Target Compan...
How does Swaption works?
How does Swaption Works ?
What is Swaps?
Swap is an over-the-counter trading deal between two firms to swap cash reserves in the futu...
Jensen’s Alpha – The Portfolio Performance Indicator
What is Jensen’s Alpha?
Jensen’s alpha also known as Jensen’s Measure was developed by Michael Jensen in 1968. It is a measure which g...
What is Moral Hazard Risk?
Definition of Moral Hazard Risk :
Moral Hazard is a danger that insuring against risk will make the event one is trying to insure, ...
What is Merger Arbitrage Strategy
What is Merger Arbitrage?
Merger arbitrage, also known as risk arbitrage, is an event-driven strategy mainly undertaken by hedge fu...