Category: Blog

What is Dollar Duration? Dollar duration is a financial metric that quantifies the change in the value of a bond or a portfolio of bonds for a one-basis-point change in interest rates. It is calculated using the formula: Dollar Duration = DUR x (∆i/1+ i) x P, where DUR is the modified duration, ∆i is […]

What is the Dividend Discount Model (DDM)? The Dividend Discount Model (DDM) is a valuation technique that estimates the intrinsic value of a stock by summing up all future dividend payments and discounting them back to their present value. The underlying theory is that the value of a stock is equal to the present value […]

In the ever-evolving landscape of finance, business, and investment, a revolutionary technology has emerged to transform the way transactions are conducted: Distributed Ledger Technology (DLT). This innovative approach is not just a buzzword; it’s a game-changer that promises to enhance efficiency, transparency, and security in ways previously unimaginable. From streamlining securities issuance to creating new […]

What is Market Disequilibrium? Market disequilibrium occurs when the quantity demanded does not equal the quantity supplied at a given price level. This imbalance disrupts the equilibrium state where supply equals demand. To understand disequilibrium better, it’s essential to define equilibrium first: equilibrium is the point at which the supply curve intersects with the demand […]

What are Discount Brokers and How Do They Work? Discount brokers are financial intermediaries that provide trading services at a lower cost compared to traditional full-service brokers. Here’s what you need to know about their services: Services Offered: Discount brokers offer online trading platforms that allow you to buy and sell a variety of financial […]

What is Direct Market Access (DMA)? Direct Market Access (DMA) is a trading method that enables traders to place orders directly with an exchange, bypassing traditional brokers. This process involves interacting with electronic order books where traders can choose their own prices and execute trades in real-time. When using DMA, traders have the ability to […]

What is Currency Devaluation? Currency devaluation is distinct from depreciation, although both terms refer to a decrease in the value of a currency. Depreciation occurs naturally in the foreign exchange market due to supply and demand forces, whereas devaluation is a deliberate action taken by a country’s central bank or government. In fixed exchange rate […]

What Is a Depositary Receipt (DR)? A depositary receipt (DR) is a negotiable certificate issued by a bank, representing shares in a foreign company traded on a local stock exchange. Essentially, it acts as a proxy for the underlying shares, making it easier for investors to participate in global markets. Here’s how it works: A […]

In the intricate dance of economic development, few factors are as potent as the demographic dividend. This phenomenon, where a country’s population structure shifts in a way that boosts economic growth, has been a cornerstone of success for many nations. But what exactly is this demographic dividend, and how can countries harness its power? Let’s […]

What is the Delphi Method? The Delphi method is a systematic, interactive forecasting technique based on the principle of structured communication among a panel of experts. It was first developed by the RAND Corporation in the 1950s as part of a U.S. Air Force-funded project aimed at predicting technological advancements. At its core, the Delphi […]