What are Circuit Breakers?

Circuit Breakers are basically measures in stock markets in percentage terms which initiate an automatic check in case of any runaway situation concerning any security or index in either direction. These percentage values of the breakers are usually computed on the basis of the last closing level of the security or the index. These can

What is Black Swan Theory?

Black Swans are unpredicted, random events of huge impact. These events deviate from the normal expected course. They are thus, also called outliers as there is no reference data in the past which gives any clue to their occurrence in the future. No scientific model can predict them. Black Swan events can take place in

What is Alpha in stock markets?

Alpha is a financial measure which measures performance. It is often seen as an active return on investment and is the difference between investment and benchmark return. It is an estimated numeric value of an expected excess return of a stock relative to the return on benchmark index depending on the volatility in the market.