What is an Exchange-Traded Product (ETP)? An exchange-traded product (ETP) refers to a financial product that is publicly traded like a bond in the stock market. ETPs offer a cost-effective and safe way to diversify an investment portfolio by acquiring exposure to an index or asset class. They are passive investments, with typically lower fees…
What is a KSOP? A KSOP is a popular retirement plan that integrates the stock holding plan of an employee with a 401(k) plan. The organization would balance employee payments in shares rather than cash under the KSOP form of retirement package. By minimizing costs that would occur by running an employee stock ownership plan…
What is a Sharing Economy? A sharing economy can be described as an economic model in which goods and resources are shared by individuals and groups in a collaborative way such that physical assets become services. The sharing economy’s growth has been facilitated through advances in big data and online platforms. The sharing economy is…
What is a Quote-Driven Market? A quote-driven market is a type of secondary market trading structure where investors trade with dealers. Nearly all bonds, currencies, and spot commodities are traded in quote-driven markets. Such markets are also commonly known as price-driven markets or dealer markets. Understanding a Quote-Driven Market A quote-driven market is among one…
What is a Tailwind? A tailwind in finance refers to a certain situation or condition that may lead to higher profits, revenue, or growth. Tailwind is a nautical term used in the aviation industry. A tailwind is a wind pushing the tail (rear end) of the plane, increasing its speed and helping it go faster….
What is a Kangaroo Bond? A Kangaroo Bond refers to a bond issued by non-Australian issuers in Australian dollars (AUD) in Australia, in compliance with the local laws and regulations. The bonds provide global issuers with access to an additional and external capital market and a source of diversification of their investor base, eventually decreasing…
What is the Qstick Indicator? The Qstick indicator, developed by Tushar Chande, is a technical momentum indicator used to identify a stock’s trend by looking at the moving average of the difference between a stock’s closing and opening price. To generate insight, the Qstick indicator is generally calculated over a specified period of time. Calculation…
What is Quadruple Witching? Quadruple witching refers to a date where stock index futures, stock index options, stock options, and single stock futures expire simultaneously. The final trading day for stock options is generally the third Friday of every month. The final trading day for index futures, stock index options, and single stock futures is…
What is the January Effect? The January Effect is known to be a seasonal increase in stock prices throughout the month of January. The increase in demand for stocks is often preceded by a decrease in price during the month of December, often due to tax-loss harvesting. An alternative reason for the rise in demand…
What is a Qualified Dividend? A qualified dividend is a dividend that is taxed at the long-term capital gains rate rather than the ordinary income rate. Criteria for a Dividend to be “Qualified” Criteria for a dividend to be taxed at the long-term capital gains rate: 1. The dividend must be paid by a United…
