The most comprehensive educational resources for finance

Securities Exams

FINRA, the U.S. Financial Industry Regulatory Authority, NASAA, and National Futures Association (NFA) conduct various financial securities examinations. These examinations classified into two levels, namely, Registered Representatives and Registered Principal. Most of these exams have a sponsorship requirement, but some don’t. The following is a list of all securities exams: Registered Representative Level: Series 3

Mutual Funds: A Beginner’s Guide

We all have different financial goals at different points of time. It could be the education of your child, retirement plans or the marriage of your child. We all look at ways of making our money work and grow faster, not unlike a plant. Taking the analogy further, while we can look after our garden,

Role of a Sell Side Trader

A sell side firm is a common term used to describe firms in the financial services industry that provide investment services to asset management firms. Sell side firms provide many services such as brokerage, investment advisory, investment banking, and research. A sell side trader is a trader employed at a sell side firm, such as

Formula to Calculate Country Risk Premium

Country risk refers to the risk of a foreign country defaulting or becoming unable to pay its debt on time. Country risk is primarily concerned with investing in a foreign country, and includes various risks such as political risk, foreign exchange risk, and sovereign risk. Country risk must be taken into consideration while making investment

Jensen’s Alpha Calculator in Excel

The Jensen’s Alpha is a popular risk-adjusted performance measure used by portfolio managers to determine how much excess returns their portfolio has generated over and above the market returns as suggested by the CAPM model. A positive alpha indicates that the portfolio has outperformed the market, and vice versa. The Jensen’s Alpha can be calculated

How to Annualize Monthly Returns – Example

It is important for an investor to know how to calculate the annualized returns on his investments. Most brokerage firms and mutual and companies will provide you your investment summary and performance summary on a monthly basis, and the returns mentioned in them will most likely be monthly returns, not annual returns. Unless you annualize

Exit Strategies for Private Equity Investors

In the world of investments, private equity refers to the investments that some investors and private equity firms directly make into a business. Private equity investments are mostly made by institutional investors in the form of venture capital funding or as leveraged buyout. Private equity can be used for many purposes such as to invest

Open Ended Mutual Funds Redemptions

This video by Khan Academy explains the concept of open-ended mutual funds in more detail. It explains how NAV is calculated and how new shares are issued and how the mutual fund company redeems the shares. An open-ended fund can keep creating new shares as well as redeeming shares. This creates a problem for the

Free Online Course on Computational Investing

I came across this free course on Computational Investing at Coursera.com. It’s a great course for anyone interested in investing in stock markets. What you will learn? Here’s a brief of what you learn in this course: Why do the prices of some companies’ stocks seem to move up and down together while others move

How to Calculate the Value of Scrap Gold?

If you have some scrap gold with you then you can surely sell it and make some quick cash. However, as we know, gold is a precious metal and is priced in terms of grams. Before you approach a gold dealer to sell your scrap gold, it is important that you find out the weight