The term vis major refers to an irresistible, greater force. Although we can attempt to prevent loss by prudent actions, diligence, and care, sometimes a loss is inevitable. When this happens, it is called a vis major, also called...
When a change in perceived wealth is accompanied by a change in spending behavior, we may see a wealth effect. In simple terms, the wealth effect is a change in consumption that occurs when a person perceives that he...
What is the Keltner Channel and how does it work
The Keltner Channel is a technical analysis tool used by traders to discern whether a market is currently overbought or oversold. The channel is based on the premise that historic...
If you want to guarantee investment returns, you should know what stochastic modeling is. With deterministic simulation, you cannot account for extreme events and the volatility of investment returns. Stochastic modelling builds these factors into the simulation, giving a...
Contributed capital also known as Paid-in capital. It is the amount of cash and assets that shareholders have contributed to a company. Paid-in capital is reported in the shareholder's equity section of the company's balance sheet and does not...
What are the different types of bundles of rights and what do they mean for copyright holders
Copyright law grants authors a bundle of rights, which are the exclusive rights to do and authorize others to do certain things with...
What is a box spread and how can it be used in trading strategies
A box spread is an options trading strategy that is used to create a synthetic long call or synthetic short call. The trade involves buying and...
The protective put, also known as a married put, is a form of portfolio strategy. Investors buy shares of stock and enough put options to cover the shares. In other words, they buy put options that have the same...
What Is an Incumbency Certificate?
Whether you're seeking to open a new bank account or undertake a major transaction, you may be required to present a letter of incumbency. Lawyers and other professionals may request such a letter, too. You...
What is the average cost method and how does it work
The average cost method is a technique used to value inventory. It assigns a cost to each unit of inventory based on the average cost of all units purchased...