What is an ascending channel
In technical analysis, an ascending channel is a bullish chart pattern that is created when the price of an asset moves higher between two parallel trendlines. The upper trendline marks the asset's highs, while the...
What is Intertemporal Choice
Intertemporal choice is the process of making decisions about events that will take place in the future. Individuals often face intertemporal choices when deciding whether to save or spend money, as well as when considering decisions...
An Overview of Entity Theory
Entity theory is a crucial legal and accounting concept for businesses. It emphasizes the separation of business and owner transactions and allows businesses to concentrate productive assets and maximize profit. This article provides an overview...
What is a turnkey solution and why do businesses need it
A turnkey solution is a product or service that is ready to use as soon as it is delivered. The term "turnkey" comes from the idea of a key...
What is a reserve fund and why do you need one
A reserve fund is an important part of any financial plan. It is a savings account that is used to cover unexpected expenses or major life events, such as...
Investing in Tracking Stocks
A tracking stock (or letter stock, targeted stock) is a type of issue based on the operations of a wholly-owned subsidiary of a diversified company. Investors receive dividends tied to the performance of the tracked business....
What is Translation Exposure
Translation exposure is the risk that a company's financial statements will be adversely affected by currency fluctuations. This type of exposure can arise when a company has operations in multiple countries and must translate its financial...
Options Trading - How Time Decay Affects Options Prices
The rate of time decay varies for different options. Specifically, the rate of time decay for ATM options is the highest and it gets smaller as the option moves in price....
What is inventory financing and why would a business need it
Inventory financing is a type of business loan that can be used to purchase inventory or Raw materials. The loan is by the inventory itself, which means that if...
What is Zero Cost Collar
A zero-cost collar is a risk management strategy used in futures contracts to protect against loss while maintaining upside potential. The strategy involves buying a put option and selling a call option at the same...