2
votes
3answers
305 views

If prices are falling, who will lend shares to short sellers?

Short selling is a process that involves borrowing shares from a person, selling them and then buying them back at a lower price, thus realizing a profit. In this situation, knowing that prices are ...
2
votes
4answers
1k views

“Derivative” and “asset-backed security”: Same concept, or related?

Derivative and asset-backed security seem to be similar, as both are based on some other assets. So I wonder if they are the same concept?
0
votes
2answers
206 views

What is meant by “proof of funds” and what would such proof be used for?

What does it mean when some funding firm or commercial bank asks for "proof of funds"?
1
vote
1answer
818 views

What's the difference between “marketable” vs. “tradable” (tradeable)?

In Bodie's textbook "Investments": Money market instruments include short-term, marketable, liquid, low-risk debt securities. I was wondering about the differences and relations between ...
17
votes
3answers
2k views

What is a trust? What are the different types of trusts?

What is a trust? What are the different types of trusts? Are some better than others? What are the different roles involved in a trust?
19
votes
9answers
2k views

What is the difference between “good debt” vs. “bad debt”?

This other question about home renovations makes reference to the concept of "good debt." Could somebody explain the concepts of good debt vs. bad debt, providing examples of each? Are there cases ...
16
votes
3answers
2k views

What is the meaning of “short selling” or “going short” a stock?

Can someone please explain the meaning of 'shorting' a stock with an example?
7
votes
2answers
2k views

What does market cap (or market capitalization) mean?

When I look at my Google finance page, and I look at a company, lets say Citigroup for example, and I see that the market cap is 83.45 billion, what does that mean? Does that mean Stock Price X ...
11
votes
2answers
3k views

What is “financial literacy” and how does one become “financially literate”?

How does one become "Financially Literate"? Also, on a side question; what does "Financially Literate" even mean?