What is Quantity Supplied? Quantity supplied is the volume of goods or services produced and sold by businesses at a particular market price. A fluctuation in the price level leads to a change in the quantity supplied. The fluctuation is called the price elasticity of supply. Therefore, the quantity supplied depends on the price level,…
What is Quantitative Trading? Quantitative trading is a type of trading that uses quantitative analysis and mathematical models to analyze the change in price and volume of securities in the stock market. Mathematical models and computations are used to collect and analyze data with a rapid throughput rate on investment opportunities. Quantitative trading is employed…
What is a Sine Wave? A sine wave refers to the graphical representation of the general function. The sine wave comes with a characteristic “S” shape where it oscillates above and below 0 in a periodic uniform manner. The sine function is a trigonometric function, which is a mapping from the set of all non-negative…
What is Quantitative Easing 2 (QE2)? Quantitative Easing 2 or QE2 refers to the second round of quantitative easing performed by the Federal Reserve. QE2 was essentially a monetary policy tool used to foster economic development in the United States in response to the global recession of 2007/2008. The policy was established and integrated in…
What is the Loss Ratio? The loss ratio, used primarily in the insurance industry, is a ratio of losses paid out to premiums earned, expressed as a percentage. Formula for the Loss Ratio The formula for the loss ratio is provided below: Where: Insurance claims paid is the amount of money paid out by the…
What is a Net Importer? A net importer is defined as a country that imports more than it exports. Imports are the goods and services brought into the country from a foreign country. Exports refer to the goods and services provided by a country to foreign clients. Imports and exports summed up constitute the total…
What is a Secular Market? A secular market is predominantly driven and impacted by elements or forces that are likely to be present in the foreseeable future. The forces can impact the price or value of a financial asset or investment and can cause the price to increase or decrease over a long-term period. A…
What is Know Your Client (KYC)? The Know Your Client (KYC) or Know Your Customer (KYC) is a process to verify the identity and other credentials of a financial services user. KYC is a regulatory process of ascertaining the identity and other information of a financial services user. The Know Your Client (KYC) process helps…
What is an Impulse Wave Pattern? An impulse wave pattern refers to a technical trading concept that denotes a vigorous movement in a financial instrument’s price, interfering with the primary path of the usual trend. It is also used to discuss the Theory of Elliott Wave – a method used to evaluate and predict fluctuations…
What is an Incentive Stock Option (ISO)? An incentive stock option (ISO) is a type of compensation given to employees, usually part of a broader compensation plan. ISOs can only be given to participating employees and can only be granted under defined limits. Incentive stock options allow employees to purchase shares at a fixed price…
