Moral Suasion
What is Moral Suasion
Moral suasion is a non-coercive approach to change somebody's behavior. The goal is to persuade them, using appeals to morality or...
Price Discovery
Price discovery is a process in the market whereby the market determines the price of an asset based on supply and demand. It helps...
Annuitization
What is annuitization and how does it work
Annuitization is the process of turning a lump sum of money into a stream of payments. This...
The Ratchet Effect Explained
We can often reverse human processes without realizing it, such as when we wind a clock. This phenomenon, called the ratchet effect, is analogous...
What is Proprietary Trading?
Proprietary trading is a term that relates to the type of trading in which the trader uses his or her own money to participate...
Default Risk
Default Risk
A default risk occurs when a partner in a business transaction does not live up to his or her obligations. This can occur...
Risk Parity
What is risk parity
Risk parity is an investing strategy that aims to balance risk across asset classes. The goal is to achieve a portfolio...
Net Interest Income
Net interest income is the difference between revenues from interest-bearing assets and costs of servicing liabilities. Bank assets typically consist of commercial and personal...