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  2. Rate of return - Wikipedia

    en.wikipedia.org/wiki/Rate_of_return

    Rate of return. In finance, return is a profit on an investment. [1] It comprises any change in value of the investment, and/or cash flows (or securities, or other investments) which the investor receives from that investment over a specified time period, such as interest payments, coupons, cash dividends and stock dividends.

  3. Implied open - Wikipedia

    en.wikipedia.org/wiki/Implied_open

    Considering the DJIA as an example, the basis of calculating implied open is the price of a "DJX index option futures contract ". This is not the price of the DJIA itself but rather the current ticker price of an option issued by the Chicago Board Options Exchange .

  4. Dow Jones Industrial Average - Wikipedia

    en.wikipedia.org/wiki/Dow_Jones_Industrial_Average

    The value of the index can also be calculated as the sum of the stock prices of the companies included in the index, divided by a factor, which is approximately 0.152 as of April 2024. The factor is changed whenever a constituent company undergoes a stock split so that the value of the index is unaffected by the stock split.

  5. What causes stock prices to change? 6 things that drive stocks

    www.aol.com/finance/causes-stock-prices-change-6...

    But over the long term, stock prices will be driven by just a handful of fundamental factors such as earnings growth and changes in valuation. Be careful to avoid overvalued stocks that might soon ...

  6. PnL explained - Wikipedia

    en.wikipedia.org/wiki/PnL_Explained

    In investment banking, PnL explained (also called P&L explain, P&L attribution or profit and loss explained) is an income statement with commentary that attributes or explains the daily fluctuation in the value of a portfolio of trades to the root causes of the changes. The report is produced by product control; and is used by traders ...

  7. Implied volatility - Wikipedia

    en.wikipedia.org/wiki/Implied_volatility

    Implied volatility. In financial mathematics, the implied volatility ( IV) of an option contract is that value of the volatility of the underlying instrument which, when input in an option pricing model (usually Black–Scholes ), will return a theoretical value equal to the price of the option. A non-option financial instrument that has ...

  8. Single-index model - Wikipedia

    en.wikipedia.org/wiki/Single-index_model

    Single-index model. The single-index model (SIM) is a simple asset pricing model to measure both the risk and the return of a stock. The model has been developed by William Sharpe in 1963 and is commonly used in the finance industry. Mathematically the SIM is expressed as: where: These equations show that the stock return is influenced by the ...

  9. Stock duration - Wikipedia

    en.wikipedia.org/wiki/Stock_duration

    Stock duration. The duration of a stock is the average of the times until its cash flows are received, weighted by their present values. The most popular model of duration uses dividends as the cash flows. In vernacular, the duration of a stock is how long we need to receive dividends to be repaid the purchase price of the stock.