Rising interest rates generally have a cooling effect on stock markets. When central banks increase rates, borrowing becomes more expensive for both businesses and consumers. Companies find it costlier to finance expansions, which can reduce their...
Financial instruments, such as stocks, bonds, derivatives, and various forms of securities, play a crucial role in promoting economic growth by facilitating the efficient allocation of capital and managing risk in the economy. They allow businesses,...
A company might use the abandonment option in various scenarios where continuing a project becomes financially or strategically unfeasible. Commonly, if a project underperforms or incurs higher-than-anticipated costs, the abandonment option allows...
Assets and liabilities are two key components of a company's balance sheet, which is a financial statement that provides a snapshot of the company's financial position at a given point in time. Assets are resources that a company owns and expects to...
Net assets refer to the value of an entity's assets minus its liabilities. They provide a snapshot of an organization's financial health and its ability to meet its obligations. There are different types of net assets, each serving a specific purpose...
Critics of random walk theory argue that by carefully considering entry and exit points, it is possible to outperform the market - it just takes a significant amount of time, effort, and understanding.
A parent company has several key responsibilities, primarily centered around managing its subsidiaries and ensuring their overall performance aligns with the parent’s strategic goals. One of its main duties is ownership and control. A parent...
Euronext is a pan-European stock exchange group that operates multiple securities and derivatives exchanges across various European countries. Established in September 2000, it has since grown to become one of the largest and most significant stock...
Short selling and buying long are opposite strategies in stock trading. When an investor buys long, they purchase a stock with the expectation that its price will rise over time. The goal is to sell the stock later at a higher price, making a profit...