What are Candlestick Patterns? Candlestick patterns are a financial technical analysis tool that depicts daily price movement information that is shown graphically on a candlestick chart. A candlestick chart is a type of financial chart that shows the price movement of derivatives, securities, and currencies, presenting them as patterns. Candlestick patterns typically represent one whole…
What is Implied Authority? Implied authority is a legal term that is used in contract law and refers to the ability an individual has to make a legally binding contract on behalf of another person or organization. Implied authority is not written on paper; rather, an agent is assumed to possess authority in order to…
What is the Interbank Rate? The interbank rate or interbank exchange rate is a financial concept used to express foreign exchange rates, which are paid by banks when they conduct currency trading with other banks. Interbank, or “between banks,” is when a bank pursues business with another bank. Somewhat similar to the stock market, interbank…
What is Called Away? Called away is an investment term used to describe an event where a monetary contract is terminated when a delivery obligation or redemption is completed. The delivery obligation refers to the distribution of an underlying asset – such as a bond – to the other party in the monetary contract. In…
What is an L-Shaped Recovery? An L-shaped recovery occurs when an economy enters into a severe recession, with high levels of unemployment and close to zero economic growth. When seen on a line chart, the recovery looks like the letter “L.” During an L-shaped recovery, there is a sharp decline in economic growth led by…
What is a K-Shaped Recovery? A K-shaped recovery divides an economy into two, with divisions based on wealth, geographic, and industrial characteristics. It is called the K-shaped recovery, because at its most basic, one portion of the economy is bouncing back and increasing in value, and the other continues to suffer the effects of the…
What is a W-Shaped Recovery? A W-shaped recovery is a form of economic recovery where the economy cycles in and out of recessionary periods. The up-and-down recovery pattern is graphically represented by changes in economic indicators such as industrial output, Gross Domestic Product (GDP), and employment. The W-shaped recovery is characterized by a steep decline, followed by…
What is a U-Shaped Recovery? A U-shaped recovery is a form of economic recovery where the recession portion typically lasts for several quarters with a slow return to growth. It is measured by economic indicators like GDP, inflation, employment levels, and industrial output. A U-shaped recovery occurs when the economy goes through a recession with…
What is the Project Life Coverage Ratio (PLCR)? The project life coverage ratio (PLCR) refers to a financial ratio that is used to determine the repayment ability of a project’s cash flows to its debt obligations. Lenders set a minimum PLCR to constrain the borrower’s maximum loan amount, thus reducing the risk of default. Understanding…
