What is Excess of Loss Reinsurance?
Excess of loss reinsurance (also known as stop-loss insurance) is an insurance policy designed to cover financial losses that exceed a predetermined amount. It is a type of risk management tool used by businesses, especially those in the finance sector, to mitigate their potential losses and protect their finances from unexpected events. This article will provide an overview of...
Features of online gambling in Australia and New Zealand
Gambling in Australia and New Zealand attracts many tourists only because of the availability of land-based casinos, bookmakers and a huge number of slot machines in hotels, bars, cruise ships and other lively places. Locals can also gamble legally within their own countries - almost all major cities have suitable establishments. But online gambling in Australia and New Zealand...
Voluntary Conveyance – What it is and How it Works
Voluntary conveyance is a process in which a person or party conveys an asset to another voluntarily. It is also known as “voluntary alienation” or “voluntary transfer”. This process of transferring assets can be used for many purposes, such as settling debts, making gifts, and transferring ownership of real estate property. In the finance sector, voluntary conveyance can be used...
Understanding the Basics of Financial Structure
From start-ups to enterprises, understanding the basics of financial structure is essential for any business. Having a strong financial foundation will allow businesses to make informed decisions, set realistic goals, and create strategies that are tailored to their needs. To learn more about how financial structure impacts the success of a business, let's dive into what it means and...
What is Distribution in Kind?
Have you ever heard of distribution in kind? It’s a common practice in the business world, but many people aren’t familiar with it. Distribution in kind is a type of transaction where the money due to a creditor is paid out with goods or services rather than cash. In this blog post, we'll be looking at why companies might...
What is a Natural Hedge?
If you’re in the business world, then it’s likely that you’ve heard of a “natural hedge.” But what does this term mean, and how can you use it to your advantage? A natural hedge is a type of financial strategy used by businesses and investors to protect themselves from losses due to changes in market conditions. In this blog...
What is GHARAR and How Does it Impact Financial Transactions?
Gharar is a term from Islamic law that is often used in the context of financial transactions. It refers to any kind of uncertainty or risk associated with a transaction, and its purpose is to protect both parties involved in a transaction. This article will explain what gharar means and how it affects financial transactions. Definition of Gharar Gharar (Arabic for...
What is a Horizontal Market?
A horizontal market is an industry or sector that serves a wide range of customers. It functions on a homogenous platform, meaning the same product or service works across multiple industries. Examples of horizontal markets include computer hardware, software companies and telecommunications services. In this blog post we will discuss the advantages and disadvantages of operating in a horizontal...
Everything You Need to Know About Inefficient Markets
An inefficient market is one where the prices of assets do not reflect their true value. This means that, in an inefficient market, there are opportunities for investors to make profits by purchasing undervalued securities and selling them at a higher price. While this may sound like a great opportunity for savvy investors, it also carries risks. Let's take a...
Understanding Home Bias and Its Impact on Investing
Home bias is a common phenomenon in the investment world, where investors favor investments in their own countries over investments outside of their countries. This tendency is seen across all asset classes and can have significant implications for an investor’s overall portfolio. Let’s take a look at what home bias is, why it exists, and its potential effects on...