What’s going on? Investments in ETFs in Europe reached their highest levels since December 2019. An exchange traded fund (ETF) is a basket of securities that trade on an exchange, just like a stock. What does this mean? Investors have been celebrating the potential coronavirus vaccines by loading up on stocks: ETFs in Europe: raked…
Tag: risk
Journal Report 13: Stress testing
Definition A computer simulation technique used to test the resilience of institutions and investment portfolios against possible future financial situations. Helping gauge investment risk and the adequacy of assets, as well as to help evaluate internal processes and controls. E.g: What happens if unemployment rate rises to v% in a specific year? What happens if…
Ep 59: Why CEOs Surround M&A Announcements with Unrelated Good News
What is this about? Mergers and acquisitions (M&A) are among the most consequential strategic decisions managers make. But markets often respond negatively to acquisition announcements, which means investors are skeptical about the transactions, their terms, or managerial motivations. Prior research suggests such skepticism may be well-founded: In quarters following acquisitions, CEOs in the U.S. are…
with HT 