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Top down approach |
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Top down approachA method of security selection that starts with asset allocation and works systematically through sector and industry allocation to individual security selection.Top down approach Similar MatchesDebt service parity approachDebt service parity approachPayment alternatives that provide the firm with the exact same schedule of after-tax debt payments (including both interest and principal). Formula approachFormula approachA procedure for organizing multilateral trade negotiations using a formula for tariff reductions as a starting point. Stratified sampling approach to indexingStratified sampling approach to indexingDividing an index into cells, each representing a different characteristic of the index, such as duration or maturity. Signaling approachSignaling approachNotion that insiders in a firm have information that the market does not have, and that the choice of capital structure by insiders can signal information to outsiders and change the value of the firm. This theory is also called the asymmetric information approach. Optimization approach to indexingOptimization approach to indexingAn approach to indexing that seeks to optimize some objective, such as to maximize the portfolio yield, to maximize convexity, or to maximize expected total returns. Further SuggestionsMarket Value ApproachAsset approach Portfolio approach Monetary approach Variance minimization approach to tracking Absorption approach Risk premium approach Cross sectional approach Elasticities approach Residual dividend approach |
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