Merger Arbitrage & Why You Should Care?

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What is Arbitrage? Arbitrage is the practice of taking advantage of a price difference between two or more markets: striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the market prices. Example: In the 19th century, the Rothschilds would buy gold in London one day and sell it […]

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Cumulative vs Annual Compound Rates of Return

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Returns can be presented on a cumulative basis or as an annual compound rate. It is critical that investors understand the difference between these two methods of reporting. Cumulative Returns Cumulative returns express the total percentage increase in the value of an investment from the time it was purchased. Example: You purchased XYZ shares 10 […]

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Financial Advisor Compensation

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The way in which a financial professional is compensated raises the question of whether they have your best interests in mind. You can judge for yourself by simply looking at the following three dominate models of compensation: Fee-Only Compensation This model minimizes conflicts of interest. A Fee-Only financial advisor only charges for his or her […]

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