What is a solvency ratio and why is it important
A solvency ratio is a financial metric that measures a company's ability to repay its debts. The solvency ratio is calculated by dividing the company's total assets by its total...
What is rehypothecation and how does it work
Rehypothecation is the practice of using collateral that has already been posted as collateral for another loan. In other words, it is the act of pledging an asset as collateral for multiple...
What is a forensic audit and why might you need one
A forensic audit is an investigation into potential financial fraud. It goes beyond a traditional audit, which focuses on whether financial statements are accurate. A forensic audit looks for...
What is expanded accounting equation?
The basic accounting equation, also known as the balance sheet equation, represents the relationship between a company's assets, liabilities, and equity. This equation is the foundation of double-entry bookkeeping, which is used by most businesses...
What is a block trade
A block trade is a large order that is executed as a single transaction in order to minimize market impact. Block trades are typically used by institutional investors when they need to buy or sell...
What is an Option Chain
An option chain is a list of all the options available for a particular stock or other asset. The chain includes both puts and calls, sorted by strike price. Each option contract in the chain...
What is the equity multiplier and how can it be used to increase home value
The equity multiplier is a ratio that measures the amount of leverage that a property owner has. To calculate the equity multiplier, divide the property's...
What is Degree of Operating Leverage and what does it measure
The degree of operating leverage (DOL) is a financial ratio that measures the amount of fixed costs a company has relative to its variable costs. This ratio is used...
Every year, many people get started to invest in cryptocurrency trading and the crypto firms push users with ads and campaigns to attract more and more investors.
For that reason, crypto trading robots have become a prominent trading tool for...
What is the Fisher Effect
The Fisher effect is an economic theory that describes how changes in inflation affect real interest rates. Named after economist Irving Fisher, the theory states that when inflation increases, so do nominal interest rates. However,...