Knowing the Tax Differences Between Active and Passive Income
Earning a steady income is a necessity if you have plans to support yourself and often requires trading your time for money. However, not all income comes in the form of paycheck. Rather, some assets that make money you’ve bought and do not require your active effort to earn it. This latter type of income, called passive income, can hold...
Prescription drug prices rise an average of 5% in 2021
It’s no secret that prescription drugs can be expensive, and even though people need cheaper access to their medications now more than ever, prescription drug prices have raised an average of 5% so far in 2021. Increasing drug prices not only affect what consumers pay out-of-pocket for their medication, but they also drive up other healthcare costs. Let’s take...
Momentum Wi-Fi Video Camera Walmart Won’t Connect Issue
Hey folks, this is an unrelated blog post to what I normally write, just wanted to put this out on the internet to help others who might be having the same problems… If you are trying to connect your new Momentum wi-fi cameras but aren’t having any luck, here are a couple of potential issues you might want to check... Are...
Asian Strangle and Exotic Options Derivatives
An Asian option is also known as the "average value option" and is a unique form of option contract where the payoff is determined by averaging the price over some pre-determined amount of time. Normally, the "European" or "American" option involves a payoff based solely on the the price at the time of exercise. There is a particular type...
Operating Profit Margin
The Operating Profit Margin is a fairly simple calculation meant to provide a business with an understanding of how much profit is earns relative to the cost of operations. Calculating this metric requires simply dividing the operating profit by the total organization revenue. Operating Profit Margin Calculator Profit $ Operations Costs $ Calculate .table-shortcode-inline { background: transparent; border: none; color: #333333; width: 110px; margin: 0; padding: 0; -webkit-box-shadow: none; box-shadow: none; text-align: center; font-weight:...
Zero-Spread Volatility
What is the 'Zero-Volatility Spread - Z-spread' The Zero-volatility spread (Z-spread) is the constant spread that makes the price of a security equal to the present value of its cash flows when added to the yield at each point on the spot rate Treasury curve where a cash flow is received. In other words, each cash flow is discounted at...
Payment For Order Flow (PFOF)
Definition The payment that a stockbroker receives from a market maker in exchange for routing its clients' trades to that market maker is called Payment for Order Flow (PFOF). It's been derisively termed a "kickback" by its critics. Payments for order flow are an essential component of today's trading infrastructure, which manages the majority of retail. PFOF is only legal in...
Mortgage Backed Securities (MBS)
In the financial world, there are plenty of ways to grow a portfolio. Mortgage-backed securities are instruments that offer a variety of benefits to those hoping to lend, invest and borrow. Here's a quick introduction to how they work, who might stand to benefit from using them and their greater role in the secondary lending market. What Are Mortgage-backed Securities...
Kappa
What is 'Kappa' One of the "Greeks," kappa is the ratio of the dollar price change of an option to a 1% change in the expected price volatility (also called implied volatility) of the underlying asset. Kappa tells investors how much an option's price will change for a given change in implied volatility, even if the actual price of the...
Knowledge Capital
Definition Knowledge management is the process of creating, sharing, using and managing the knowledge and information of an organisation. It refers to a multidisciplinary approach to achieving organisational objectives by making the best use of knowledge. What is 'Knowledge Capital' An intangible asset that comprises the information and skills of a company's employees, their experience with business processes, group work and on-the-job...