Important Financial Investment Terms
Thousands of investors have told us they are confused by the investment jargon that is used by financial advisors. We also know some terms, that investors don't understand, are used by advisors as sales ploys. They establish themselves as experts when they define a term you may not understand.
There is an alternative. We have defined more than 1,500 commonly used financial terms. Look-up a definition by entering the term in the search engine or using the alphabetical search service.
Definition of 'Law of Large Numbers'
In financial analysis, a theory that indicates beating large numbers, for example large numbers of investors, is very difficult if not impossible to achieve. This law is part of the rationalization for the use of passive management. Money managers will have a difficult time beating large numbers of investors (the market) over longer time periods.