Triangular Arbitrage is a form of arbitrage that exploits pricing discrepancies resulting from the trading of three different currencies in the foreign exchange market. In order to be successful, one must first know the factors that make triangular arbitrage...
What is an Irrevocable Letter of Credit
An irrevocable letter of credit is a type of financial guarantee that is typically used in international trade transactions. It is a guarantee from a bank that the funds will be available to...
An anticipatory breach is when one party makes a declaration that it intends to break a contract before it actually happens. It may be a breach of contract or an anticipatory repudiation. In either case, the breaching party may...
What is the Gross Income Multiplier (GIM) and how to calculate it?
The Gross Income Multiplier (GIM) is a measure of how much an economy can grow in response to an increase in government spending. In simple terms, it tells...
What is liquidity preference theory
The liquidity preference theory is a key component of Keynesian economics, which argues that the demand for money is a function of the interest rate. The theory states that people prefer to hold cash rather...
ESOPs are not subject to Regulation U
Unlike other types of employee stock ownership plans, ESOPs do not have to comply with Regulation U. In most cases, nonbank lenders are subject to slightly different rules for lending against securities. In...
What is a proxy fight and how does it work
A proxy fight is a battle between competing groups of shareholders for control of a company. It usually happens when one group tries to overthrow the existing management team in...
What is outcome bias and how does it impact our decision-making process
Outcome bias is a cognitive bias that occurs when we allow the outcome of a decision to influence our evaluation of that decision. In other words, we tend...
The Hindenburg omen was a recently proposed technical analysis pattern named after the disastrous Hindenburg plane disaster. Jim Miekka believed it could predict crashes in the stock market. This article will discuss the signals, reliability, and reliability of this...
The term price sensitivity refers to a product's ability to impact purchasing behavior. Consumers react differently to price changes, and sensitivity varies based on the product, economic factors, and even individual preferences. This article will explore the varying levels...