Arbitrage Pricing Theory (APT) Arbitrage Pricing Theory (APT) is a model used for identifying an asset, which is priced incorrectly, i.e. either the asset is undervalued or overvalued. After identifying…

What is Money Market? Money market refers to the market where borrowers and lenders exchange short-term funds to solve their liquidity needs. Short term refers to a period which is…

What is Marketable Financial Instruments? Marketable financial instruments are instruments that can be easily traded in an organised financial trading system, such as a stock exchange. The main feature of…

What is Financial Instrument? A financial instrument is a tradable asset of any kind. Financial instruments are key components of the modern financial market system as they allow efficient flow…

What is Investment? Investment refers to the process of deploying money, finances or funds with the expectation of getting returns in due course of time. Investment is the use of…