What an automated market maker (AMM) does — uses a formula instead of an order book for trading

What a limit order vs market order does — limit sets a price, market executes immediately

Limit orders set a price, market orders execute at current market price instantly

What the Treynor-Black model does — combines active stock picking with a passive market portfolio

The Treynor-Black model optimizes portfolio returns by blending active investments with a passive market index

What supply and demand equilibrium is — the price where quantity supplied equals quantity demanded

Price at which market clears, Qs = Qd

What the Flash Crash of 2010 revealed — algorithmic trading can cause extreme market swings

Algorithmic trading can trigger rapid, severe market fluctuations, as seen in the 2010 Flash Crash

What arbitrage pricing theory (APT) differs from CAPM — allows multiple systematic risk factors

APT considers multiple risk factors, unlike CAPM's single market risk factor

What is the Capital Asset Pricing Model (CAPM) and how does it calculate the expected return on an investment?

CAPM: Expected return = Risk-free rate + Beta * (Market return - Risk-free rate)