The process of selling the upside potential of an asset in exchange for downside price protection. For example, a wheat farmer may use the futures market to hedge or protect against future adverse price movements (e.g. prices for wheat being lower in the future when it is time to harvest and sell the wheat).
An article on indexed annuities appeared in Bloomberg yesterday (click here to read).
The article is substantive and comes from a credible source. It is provides a good explanation of why surrender fees need to be a front-and-center consideration for any consumer considering the purchase of an...
Meir Statman is the Glenn Klimek Professor of Finance at the Leavey School of Business, Santa Clara University, and Visiting Professor at Tilburg University in the Netherlands.
His research on behavioral finance has been supported by the National Science Foundation, CFA Institute, and Investment Management Consultants Association (IMCA) and has...
David Stipp has written about science, medicine, the environment and biotech since 1982 for The Wall Street Journal, Fortune, Salon, Science and other publications. He led Fortune’s science and medical coverage from 1995 to 2005 as a senior writer, and from 1982 to 1995 covered science and medicine as a staff reporter at The Wall Street Journal. Over the past decade he has written extensively on the science of aging. In 1998 he won a National Association of Science Writers’ award for best magazine article, and in 1993-4 served as a Knight Fellow at the Massachusetts Institute of Technology.
David’s most recent book, The Youth...
In a basic sense, information theory measures the level of surprise in a message.
A highly informative message will come as a complete surprise and tell you something about which you had no previous knowledge.
Sounds pretty good, right—of what use is it to be told what you already know? Well, there are actually cases where information is not so welcome.
