What Is a Trading Platform? A trading platform is a software system used to trade securities. It allows investors to open, close, and manage market positions online through a financial intermediary, such as an online broker. Online trading platforms are frequently offered by brokers either for free or at a discount in exchange for maintaining a
What Is a Trading Strategy? A trading strategy is a systematic methodology used for buying and selling in the securities markets. A trading strategy is based on predefined rules and criteria used when making trading decisions. A trading strategy may be simple or complex, and involve considerations such as investment style (e.g., value vs. growth)
What Is the Traditional Theory of Capital Structure? The traditional theory of capital structure states that when the weighted average cost of capital (WACC) is minimized, and the market value of assets is maximized, an optimal structure of capital exists. This is achieved by utilizing a mix of both equity and debt capital. This point
What Is a Traditional IRA? A traditional individual retirement account (IRA) allows individuals to direct pre-tax income toward investments that can grow tax-deferred. The IRS assesses no capital gains or dividend income taxes until the beneficiary makes a withdrawal. Individual taxpayers can contribute 100% of any earned compensation up to a specified maximum dollar amount. Income thresholds may
What Is a Traditional Whole Life Policy? A traditional whole life policy is a type of life insurance contract that provides for insurance coverage of the contract holder for their entire life. Unlike term life insurance, which covers the contract holder until a specified age limit, a traditional whole life policy never runs out. Upon the
What Is Traffic Acquisition Cost (TAC)? Traffic acquisition cost (TAC) consists of payments made by internet search companies to affiliates and online firms that direct consumer and business traffic to their websites. Key Takeaways Traffic acquisition costs are payments that internet search companies make to affiliates and online companies for directing traffic to their websites.TAC
What Is Tragedy of the Commons? The tragedy of the commons is an economics problem in which every individual has an incentive to consume a resource, but at the expense of every other individual—with no way to exclude anyone from consuming. Initially it was formulated by asking what would happen if every shepherd, acting in
What Is a Trailer Fee? A trailer fee is a fee that a mutual fund manager pays to a salesperson who sells the fund to investors. The trailer fee is paid to the salesperson for providing the investor with ongoing investment advice and services. This fee will be paid annually to the advisor for as
What Is Trailing? Trailing refers to the property of a measurement, indicator, or data series that reflects a past event or observation. It is usually attached to a specified time interval by which the data trail or over which that data are aggregated, summed, or averaged. Trailing data and indicators are used to reveal underlying
What Is Trailing Price-To-Earnings? Trailing price-to-earnings (P/E) is a relative valuation multiple that is based on the last 12 months of actual earnings. It is calculated by taking the current stock price and dividing it by the trailing earnings per share (EPS) for the past 12 months. Trailing P/E can be contrasted with the forward P/E
