The Money exchange

Category: glossary , Asked by: A. P. From Canada

A: An investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goals, risk tolerance and investment horizon. The three main asset classes - equities, fixed-income, and cash and equivalents - have different levels of risk and return, so each will behave differently over time. There is no simple formula that can find the right asset allocation for every individual. However, the consensus among most financial professionals is that asset allocation is one of the most important decisions that investors make. In other words, your selection of individual securities is secondary to the way you allocate your investment in stocks, bonds, and cash and equivalents, which will be the principal determinants of your investment results. Asset-allocation mutual funds, also known as life-cycle, or target-date, funds, are an attempt to provide investors with portfolio structures that address an investor's age, risk appetite and investment objectives with an appropriate apportionment of asset classes. However, critics of this approach point out that arriving at a standardized solution for allocating portfolio assets is problematic because individual investors require individual solutions.

Category: glossary , Asked by: Isaias U. From Kelowna, Canada

A: A passive index investing strategy that is established by using a combination of index funds and long-term equity anticipation securities (LEAPS). The investor must roll over a series of LEAP options in an attempt to gain exposure to a long-term move in an index. The leverage from the options allows the investor to magnify gains and can result in outperforming an index over the long run. This type of investing strategy allows an investor to have the same exposure to a standard benchmark, but often with less capital because of the exposure from the LEAP option. Over time, the position will have similar payoff characteristics to a regular indexing strategy, but returns tend to be slightly magnified because of the exposure from the option in the early stages of the setup.

Category: technical , Asked by: I. O. From Luton, United Kingdom

A: If you're looking for a forex site with the most secure connection, we absolutely recommend you to register to "EToro USA". Players are frequently impressed when trying to sign in to the playing platform. It's convenient to handle the trading environment. You will not find many of the usual login disruptions you always see connecting to this type of servers, and the connection to the server is at all times flowing.

Category: money , Asked by: Payton O. From Canada

A: If you look for a site that has a relatively huge leverage, we absolutely recommend you to visit "AVA FX". In "AVA FX" the leverage is up to 200:01:00. So if you wanna play with the big ones, this one can be a great way to gain big amounts. The minimum deposit is $100 they charge no commission in "AVA FX".

Category: glossary , Asked by: B. Stephenson from Canada

A: A law that permits a court to triple the amount of damages awarded in cases where the defendant willfully acted in a prohibited way. Usually a court will require substantial evidence proving that the defendant's actions were willful in nature or done in bad faith before treble damages are awarded. In the corporate world treble damages often arise in regard to patent infringement, willful counterfeiting and antitrust lawsuits. Damages are calculated against the financial loss incurred by the plaintiff directly resulting from the actions of the defendant.

Category: general , Asked by: Alaina Y. From United States

A: We believe "ForexWebTrader" is definitely the one to consider if you want a foreign exchange web trading system that gives a proficient customer service. The tech support service is extraordinary - the guys there seem absolutely skillful, and also really friendly.

Category: glossary , Asked by: M. U. From Dublin, Ireland

A: "bank discount basis " is A quoting convention used by financial institutions when quoting prices for fixed-income securities sold at a discount, particularly U.S. Government issues. The quote is presented as a percentage of face value, and is determined by discounting the bond by using a 360-day-count convention, which assumes there are twelve 30-day months in a year. Also referred to as "discount yield". Differences in the day count convention used by the firm quoting a fixed-income security is subtle, but important. Over longer maturities, the day count convention will have a greater impact on the current 'price' of a bond than if the time to maturity is much shorter. The 30/360 day-count convention is the standard when quoting government treasury bonds for banks.

Category: glossary , Asked by: M. Cabrera from Cork, Ireland

A: An insurance term which refers to the basic things that people need to be able to do in order look after themselves - e.g. Wash and feed themselves. People who are not able to carry out ADLs unaided may be eligible for long term care insurance.

Category: technical , Asked by: P. S. From United Kingdom

A: We think "FX club" is the right place for you. We are constantly happy with the login process to the server. You will not find most of the ordinary communication disruptions you always see using this size of servers, the connection is usually excellent, and it's no trouble at all to deal with the program.

Category: glossary , Asked by: Chaim A. From Tacoma, United States

A: A mathematical representation of the typical value of a series of numbers, computed as the sum of all the numbers in the series divided by the count of all numbers in the series. Arithmetic mean is commonly referred to as "average" or simply as "mean". Suppose you wanted to know what the arithmetic mean of a stock's closing price was over the past week. If during the five-day week the stock closed at $14.50, $14.80, $15.20, $15.50, and then $14.00, its arithmetic mean closing price would be equal to the sum of the five numbers ($74.00) divided by five, or $14.80.