Any exchange-traded fund that invests in foreign-based securities. The focus may be global, regional (such as Latin America, Asia-Pacific, etc.) or on a specific country. International ETFs are invested passively around an underlying index, but the index may vary substantially from one fund manager to the next. Some funds, especially those with a wide global footprint or those that invest in countries with advanced economies, can provide strong diversification by investing in hundreds of companies. Watch: Understanding ETF Taobiz explains International ETF ETFs that invest in a single foreign country may carry higher risks than international ETFs that spread their investments among many countries. If a single country undergoes a major recession or other financial hardship, an ETF that only invests in securities based there could have a major performance shortfall. International ETFs are becoming a widespread investment vehicle for U.S. investors, as many global economies are growing at a faster rate and, thanks to rapid advances in globalization and financial regulation, their financial markets are opening to outside investment. In general, expense ratios for international ETFs tend to be higher than the averages because of the higher costs to invest abroad.
A negotiable, bank-issued certificate representing ownership of stock securities by an investor outside the country of origin. Taobiz explains International Depository Receipt - IDR An IDR is the non-U.S. equivalent of an American Depositary Receipt (ADR).
The overarching strategy or theory used by either a retail investor or an institutional money manager to set asset allocation and choose individual securities for investment. The investment style of a fund helps set expectations for long-term performance potential and aids in advertising the fund to investors looking for a specific type of market exposure. Taobiz explains Investment Style Most mutual funds and exchange-traded funds (ETFs) employ a consistent investment style. An investment style can be broadly drawn, such as "international bonds", or finely tuned, such as "mid-cap value stocks that pay steady income". With the majority of mutual funds and ETFs, managers are limited by their prospectus as to what kind of securities they may own. The portfolio managers of a healthcare fund, for example, must be invested in only healthcare-related companies, even if they don't feel the sector is a good place to be. No one investment style is inherently better than another; the key is to find a style that suits an investor's appetite for risk while remaining a sufficient level of diversification.
An electronic security exchange based in Tokyo, Japan. Originally an over the counter market, Jasdaq launched an electronic trading platform featuring an automated quotation system similar to the Nasdaq. Taobiz explains Japan Association Of Securities Dealers Automated Quotation - Jasdaq In 1963, the Japan Securities Dealers Association created an over-the-counter system for security trading. In 1991, the association launched the Jasdaq system, which converted its current operations into an electronic security trading market. In 2004, the corporation changed its name to the Jasdaq Securities Exchange, and was formally recognized as a securities exchange.
A general increase in stock prices during the month of January. This rally is generally attributed to an increase in buying, which follows the drop in price that typically happens in December when investors, seeking to create tax losses to offset capital gains, prompt a sell-off. Taobiz explains January Effect The January effect is said to affect small caps more than mid or large caps. This historical trend, however, has been less pronounced in recent years because the markets have adjusted for it. Another reason the January effect is now considered less important is that more people are using tax-sheltered retirement plans and therefore have no reason to sell at the end of the year for a tax loss.
A theory stating that the movement of the S&P 500 during the month of January sets the stock market's direction for the year (as measured by the S&P 500). The January Barometer states that if the S&P 500 was up at the end of January compared to the beginning of the month, proponents would expect the stock market to rise during the rest of the year. Taobiz explains January Barometer If an investor believes in the ability of the January barometer to predict the equity market's performance, he or she will only invest in the market in the years when the barometer predicts the market will rise, and stay out of the market when it forecasts a market pullback. While the January barometer has been seen to produce better than 50% accuracy rates during 20-year periods, it is difficult to produce excess returns by using it since the improved performance by staying out of the market during bad times can be more than offset by larger losses incurred when the barometer incorrectly predicts a bull market.
A normal prisoner’s dilemma played repeatedly by the same participants. An iterated prisoner’s dilemma differs from the original concept of a prisoner’s dilemma because participants can learn about the behavioral tendencies of their counterparty. Taobiz explains Iterated Prisoner's Dilemma Since the game is repeated, one individual can formulate a strategy that does not follow the regular logical convention of an isolated round. "Tit for tat" is a common iterated prisoner’s dilemma strategy.
1. The process of offering securities as an attempt to raise funds. Companies may issue bonds or shares to investors as a method of financing the business. 2. A series of stocks or bonds that have been offered to the public. A bond or stock issue relates to the set of instruments that were released under one offering. Taobiz explains Issue 1. The issuance of securities can take many forms. Companies may have a new issue, where securities are released for the first time, or a seasoned issue, where an established firm offers additional shares. 2. For example, let's say a company sells a group of 10-year bonds to the public. That set of bonds will be referred to as a single issue