LIBOR stands for London interbank offered rate. Banks in London, similar to the United States, can exchange money between banks. LIBOR is the rate at which banks borrow funds from other banks in the London interbank market.
LIBOR Calculation
LIBOR is an average of actual rates used by banks. To calculate LIBOR, the British Banker’s Association (BBA), surveys a variety of banks that reflect the general market. The BBA then surveys the different banks’ interbank interest rate quotes. These quotes are made available to the public.
The top and bottom quartile of the …

In Investing, You Get What You Don’t Pay For
Remarks by John C. Bogle
Founder and Former Chairman, The Vanguard Group
The World Money Show
February 2, 2005
Orlando, Florida
I’m delighted to be here again to keynote this conference. One very important thing has changed since I last spoke here six years ago, and two vital elements have remained unchanged. That single critical change, and those two things that have remained the same, have revealed three of the eternal verities of investing, and I’m pleased to address both the change and the constancy.
What has changed, …

As the popularity of hedge fund strategies increases, the influence of these strategies in the traditional mutual fund world continues to grow. Once limited to only high net worth accredited individuals or institutional investors, many hedge fund strategies are now be deployed within mutual funds.
130/30 funds are one of these new mutual fund structures. The 130/30 structure differs from traditional mutual funds because the strategy allows managers to have both long and short exposure.
Most mutual fund managers can only have long positions. In a long only portfolio, managers purchase stocks in …

Merger arbitrage, also known as risk arbitrage, is an event driven trading strategy that attempts to exploit the market price spreads of equities during mergers.

The MIT Department of Economics World Economy
Laboratory Conference Washington, D.C.
Delivered April 26, 1994
When Rudi Dornbusch invited me to speak at this conference, he gave me a totally free hand in deciding what I wanted to talk about. Well, I want to discuss a subject which fascinates me but doesn’t seem to interest others very much. That is my theory of reflexivity which has guided me both in making money and in giving money away, but has received very little sdeerious consideration from anybody else. It is really a very curious …

George Soros
George Soros is an extremely successful stock speculator and investor. From 1970 to 1980, Soros’s Quantum Fund returned an average of 42.5% per year. Forbes ranked Soros as the 24th wealthiest person in the world in 2004, with an estimated net worth of $7.2 billion.
Soros is famously known for breaking the Bank of England in 1992 when his bearish trades precipitated the fall of the European monetary system. The successful trade earned Soros an estimated $1.1 billion. Soros successfully repeated this trade again during the 1996 and 1998 Asian currency …