The debt capital markets (DCM) are a key source of funding for companies and governments. They provide a way for issuers to raise debt financing…
Defensive Industries – Definition, Characteristics, Examples and Advantages
What are Defensive Industries? Defensive industries are companies whose revenues and earnings are relatively insensitive to economic cycles. These businesses provide essential goods and services…
Dematerialization (Demat) – Definition, Process and Benefits
What Is Dematerialization (DEMAT)? Dematerialization is the transformation of physical certificates of ownership of shares or other securities into electronic form so that they can…
Dotcom Bubble – Definition, Causes, Characteristics
What is Dotcom Bubble? Dotcom Bubble is defined as a sudden rise in the stock prices of Dotcom companies that is fueled by irrational exuberance…
Delivery Versus Payment (DVP) – Definition and How it Works
Delivery versus payment DVP is a type of securities settlement in which the delivery of securities and the payment of funds take place simultaneously or…
Hedge Fund – Definition, Meaning, History, Characteristics and Types
A hedge fund is a type of investment vehicle typically used by sophisticated investors to pursue high-risk, high-return strategies. Hedge funds may be open to…
Hedge Fund Manager – Definition, Functions, Types and Requirements
A Hedge Fund Manager is an individual who invests other people’s money into hedge funds. Hedge funds are investment vehicles that pool together capital from…
Depth of Market (DOM) – Overview, Examples and Factors
What Is Depth of Market? Depth of market (DOM) is a measure of the number of buy and sell orders for a security or asset…
Difference Between Face Value and Market Value
What Is Face Value? Face value is the value of a financial instrument, typically a bond or stock, that is stated on the instrument itself….
Buy and Hold – Definition, Strategy, Pros and Cons
What is Buy and Hold? Buy and hold is a passive investment strategy that encourages investors for buying stocks and holding them for the long…
Capital Loss – Definition, Meaning and Example
A capital loss is a decrease in the value of a capital asset. Capital assets are things like stocks, bonds, real estate, and personal property….
Commercial Paper – Types, Advantages and Disadvantages
Commercial Paper (CP) is a short-term debt instrument offered by businesses to finance activities for up to one year. It allows companies to raise cash…
Common Stock – Definition, Classification and Examples
Common stock is a type of security that represents the ownership of a company’s equity. Common stockholders have voting rights and may receive dividends. Dividends are…
Commodity Futures – Definition, Example and Risks
Commodity futures are a standardized contract between two parties to buy or sell a specific commodity at a specified price on a specified date in…
Bond Yield – Definition, Types and Calculations
Bond yield is the return you get after investing in a bond which is a debt instrument issued by the government or corporations, both public…
Bid Ask Spread – Definition, Types and Examples
Bid-ask spread is an amount by which the asset’s ask price is more than the bid price in the market. It is the difference between…
Bond Ratings – How they work and the Agencies involved
A bond rating is a measurement that indicates how secure a bond is. In other words, it tells you the creditworthiness of a bond by…
Bond Market – Definition, History and Types
The bond market is a financial market that has- a primary market in which governmental entities or corporations issue new debt securities – and –…
Capital Gains Tax – Definition, Strategies and Example
Capital gains tax is a tax type levied upon the profits earned from the non-inventory assets’ sales. These assets can be bonds, stocks, businesses, real…
Book Value Formula – Definition and Calculation
Book value is the net value of an asset on a company’s financial balance sheet in the accounting world while in the financial or investing…
Capital Investment – Definition, Example and Benefits
Capital investment is the expenditure of money invested in a company for funding its long-term growth. Additionally, it can be understood as the money that…
Carried Interest – Definition, History and Examples
Carried interest is a type of interest that is applied to investment funds that are set up as partnerships. It is generally related to private…
Bull Market – Definition, Types and Examples
A bull market is a financial market state in which prices keep on rising or are supposed to continually rise. This term is generally utilized…
Capitalization Rate – Definition, Importance and Formula
Capitalization rate is the rate of return on a property in view of the NOI or net operating income that the property generates. It is…
Butterfly Spread – Definition, Characteristics and Types
Butterfly Spread is a neutral strategy that combines the advantages of both bull and bear spreads. It’s a strategy with restricted profit potential and a…
Bonds vs stocks – Key Differences, Pros and Cons
In this article on Bonds vs stocks we do a comparative analysis between stocks and bonds for investors to find out the differences in their…
Blue Chip Stock – Definition, Meaning and Examples of Top Blue Chip Companies
Blue Chip stock is the stock associated with some of the top-rated, well-established companies. These are companies that have come across several hurdles and are…
Barbell Strategy – Definition, Risks, Benefits and Applications
What is Barbell Strategy? Definition: Barbell strategy is defined as a fixed-income portfolio strategy in which investors invest in long- and short-duration bonds, but they…
Bailment – Definition, Features, Types and Importance
What is Bailment? Definition: A bailment is defined as a type of legal relationship that revolves around the contractual transfer of assets or property from…
Accredited Investor – Definition, Process and Requirements
Accredited Investor Definition Definition: An accredited investor is defined as an individual or business entity that has the authority to invest in securities that are…
Bearer Bond – Definition, Meaning, Pros and Cons
Bearer Bond is an unregistered debt security issued by a government or a corporation. It is an anonymous instrument because it is difficult to identify…
Normal Distribution (Bell Curve) – Definition and Examples
What is Bell Curve? Definition: Bell curve is defined as a graphical depiction of a normal probability distribution whose standard deviations from the mean form…
Stakeholders – Definition, Categories and Types
Stakeholders can be understood as an individual, group of people, members, or any organization that get affected by the result of an associated project. Stakeholders…
Bearer Share – Definition, Advantages and Disadvantages
What is a Bearer Share? Definition: A bearer share is defined as a type of share in which the name of the owner of a…
Market Value – Definition, How to Calculate, Pros and Cons
Market value can be understood as the price that an asset, brand, or business might fetch in its target marketplace. You may also understand it…
Market Average Definition – Concept and Importance
Market average is used to refer to the measurement of the general or the overall price level in a stock market and is expressed by…
How To Start Investing Money (Step by Step Guide)
Investing is referred to as a way of allocating money for price appreciation or in simple terms as a method to generate a profit or…
Impact Investing | Types, Importance & Characteristics
Impact investing is made to generate some measurable, positive, and productive environmental and social impacts together with financial returns. The primary objective of impact investing…
Inside Sales – Definition, Approach, Benefits and Challenges
Sales are an integral part of every business. Different businesses opt for different types of sales methods depending on the types of products sold by…
What is a Market Profile? Definition and How To Create One
Definition Market profile is the set of characteristics that can help a business entity in recognizing a market segment or a target group of population…
