Diversification in shares refers to a risk management strategy employed by investors to reduce the potential impact of market fluctuations on their investment portfolios. It involves spreading investments across a variety of different companies,...
Gold prices often exhibit an inverse relationship with stock market volatility. When the stock market experiences volatility, marked by significant price swings and uncertainty, investors typically seek safer assets to protect their capital. Gold,...
Nominal GDP and real GDP are two measures of a country's economic output, but they differ in the way they are calculated. Nominal GDP is calculated using current market prices, while real GDP is adjusted for inflation.
Stocks represent an individual's or institution's stake in a publicly traded entity. These are the investments that will allow you to accumulate wealth. The stockholder is a shareholder who receives dividends in exchange for their investment.
A True Strength Index (TSI) value below zero signifies a bearish market condition, indicating that the momentum of the asset is in a downward trend. The TSI is a momentum-based indicator developed by William Blau to capture both the speed and the...
Among the primary macroeconomic accounts, the monetary accounts perform a unique function. To begin with, in a money-based market economy, the financial system facilitates the transfer of resources between sectors. Due to its role as a clearinghouse...
Market capitalization plays a crucial role in a company's ability to raise capital through issuing stocks or bonds. The size of a company's market capitalization serves as an indicator of its overall value and market perception, which directly...
Capital gains and regular income represent two distinct categories of earnings, each subject to different tax treatments. Capital gains arise from the sale of an asset at a price higher than its purchase price. Common examples include profits from...
Interest and accrual are financial terms that pertain to the accumulation of value over time, but they represent distinct concepts in the realm of finance.
A board lot refers to a standardized trading quantity or volume of shares or securities that are bought and sold on a stock exchange. It represents the minimum number of shares that can be traded at a time in a particular security. Board lots are...