What Is Sensitivity Analysis

question 1

Short Answer

What is sensitivity analysis?

---

Definitions:

Common Stock

A type of security that represents ownership in a corporation, giving shareholders voting rights and potential dividends.

Bid-Ask Spread

The difference between the highest price that a buyer is willing to pay (bid) for an asset and the lowest price that a seller is willing to accept (ask).

Dealer

An individual or firm in the financial services industry who buys and sells securities for their own account, whether through a broker or otherwise.

Buy and Sell

The basic actions in trading and investing where "buy" refers to acquiring an asset, and "sell" indicates disposing of an asset.