Volatility Smile
The Volatility Smile and Its Importance to Options Traders The term "volatility smile" has been used to describe the behavior of financial options. Volatility smiles are a parameter in the Black-Scholes formula that must be adjusted to match market prices. This article will discuss the definition of the volatility smile and its importance to options traders. This article explains why...
Market Breadth
Market Breadth and Divergence A security analysis indicator that shows how well stocks are moving in a trend is known as market breadth. Market breadth is the ratio of advancing stocks to declining ones. Divergence is the opposite of market breadth. If there is a large increase in the number of advancing stocks, market breadth is generally considered to be...
Adjustable Life Insurance
What is adjustable life insurance and how does it work Adjustable life insurance is a type of whole life insurance that gives policyholders the ability to make changes to their death benefit and premium payments. Unlike traditional whole life insurance, which locks in rates for the life of the policy, adjustable life insurance allows policyholders to adjust their coverage as...
Discontinued Operations
What are discontinued operations? Discontinued operations are a business, group of components, or nonprofit activity that has ceased operations. These activities are usually not profitable or in existence any longer, and their demise means that the company no longer exists. Contingent liabilities related to discontinued operations are also considered to be discontinued operations. However, there is no definitive definition of...
Average Inventory
What is average inventory and why is it important Average inventory is a measure of the average amount of inventory that a company has on hand over a period of time. The average inventory can be calculated by taking the total value of all inventory items and divided it by the number of days in the period. The average inventory...
How Does an LLC Open a Business Account?
Having registered with one of the best online LLC formation companies to assist you with the legalities of establishing your own LLC company, and then having them get your enterprise in correct standing and officially recognized by your State, the next thing you need to do is set up a business account for LLC. This is an essential part of...
5 Common Personal Loan Requirements to Know Before Applying
Personal loans are undoubtedly beneficial when you're in a financial pinch. They can help you pay for expenses your salary can't cover and provide an emergency fund for unexpected circumstances. However, getting a personal loan can be intimidating, especially if you've never taken one out or aren't sure what to expect. Finding the best terms for your needs will be...
LIFO Liquidation
What is LIFO Liquidation? A LIFO liquidation is a process in which a company sells old inventory in order to raise the sales price and increase gross margins. Companies are less willing to match the lower cost of goods sold with current higher sales prices and instead choose to avoid LIFO liquidation. As a result, they generate higher profits and...
Three Black Crows
How to Trade the Three Black Crows Pattern In the financial markets, a downturn is called a three-crows pattern when three long candlesticks all trend down in a row. This pattern can indicate that an investor should avoid investing during this time. Here are some trading rules to consider if you're considering using this pattern. 1. Use a candlestick chart...
Marginal Rate of Technical Substitution
What is the Marginal Rate of Technical Substitution (MRTS)? The Marginal Rate of Technical Substitution (MRTS) is the rate at which one input can be replaced by another input while still producing the same output. In other words, it measures how much of one input can be substituted for another input without affecting the output. The MRTS is used to...