Related Words

Agency Theory: The analysis of principal-agent relationships, in which one person, an agent, acts on behalf of another person, a principal.

Mercantile Agency: An organization that supplies credit ratings and reports on firms that are prospective customers.

Market Segmentation Theory Or Preferred Habitat Theory: A biased expectations theory that asserts that the shape of the yield curve is determined by the supply of and demand for securities within each maturity sector.

Local Expectations Theory: A form of the pure expectations theory that suggests that the returns on bonds of different maturities will be the same over a short-term investment horizon.

Liquidity Theory Of The Term Structure: A biased expectations theory that asserts that the implied forward rates will not be a pure estimate of the market's expectations of future interest rates because they embody a liquidity premium.

Miasma Theory: The theory that diseases were caused by miasma or bad air arising from organic decay, filth, or other conditions of the local environment.

Modern Portfolio Theory: In making investment decisions, adherents of modern portfolio theory focuses on potential return in relation to potential risk. The strategy is to evaluate and select individual securities a . . . View Full Definition

Open-Buyer-Agency-Agreement: This agreement is a nonexclusive agency contract between a broker and a buyer. It permits the buyer to enter into similar agreements with an unlimited number of brokers. The buyer is obligat . . . View Full Definition

Optimal Foraging Theory: A theory designed to predict the foraging behavior that maximizes food intake per unit time

Odd-Lot Theory: The theory that profits can be made by making trades contrary to odd-lot trading patterns, since odd-lot investors have poor timing. This theory is no longer popular.