What is a Financial System? A financial system is a network of financial institutions – such as insurance companies, stock exchanges, and investment banks – that work together to exchange and transfer capital from one place to another. Through the financial system, investors receive capital to fund projects and receive a return on their investments….
What is an Elective-Deferral Contribution? An elective-deferral contribution is an employee-authorized contribution made from an employee’s salary account to an employer-sponsored retirement plan. The employee needs to provide consent to the employer to deduct contributions. The funds contributed to retirement plans, including 401(k) and 403(b). Elective deferral contributions are a popular way to save for…
What is a Japan ETF? A Japan ETF is an exchange-traded fund that baskets a number of equities that are exposed to Japan’s economic growth and profits. Equities include major corporations such as Honda Motor Co. and Sony Corp. Therefore, Japan ETFs offer investors the opportunity to be exposed to Japan-based businesses, along with many…
What is the Double Exponential Moving Average (DEMA)? Double exponential moving averages (DEMA) are an improvement over Exponential Moving Average (EMA) because they allocate more weight to recent data points. The reduced lag results in a more responsive moving average, which helps short-term traders spot trend reversals quickly. Let us look at Apple Inc.’s prices…
What is Estimated Ultimate Recovery (EUR)? Estimated Ultimate Recovery (EUR) is a term specifically used in the oil and gas industry. It is the estimate of the total quantity of oil and/or gas that can ultimately be recovered from an oil reserve or a field. Simply put, it is the estimated quantity of expected total production…
What is the Accumulation/Distribution Indicator (A/D)? The accumulation distribution indicator (AD) or accumulation distribution line is a volume-based indicator used to determine the trend of a stock, using the relation between the stock’s price and volume flow. The term “accumulation” denotes the level of buying (demand), and “distribution” denotes the level of selling (supply) of…
What are Cryptocurrency Exchanges? In order to start buying and selling cryptocurrencies and other digital assets, the most common way is to transact with Crypto Exchanges. Cryptocurrency exchanges are privately-owned platforms that facilitate the trading of cryptocurrencies for other crypto assets, including digital and fiat currencies and NFTs. Centralized Cryptocurrency Exchanges (“CEX”) Centralized cryptocurrency exchanges…
What is Binance Coin (BNB)? Binance Coin (BNB) is a cryptocurrency that can be used to trade and pay fees on the Binance cryptocurrency exchange. The Binance Exchange is the largest cryptocurrency exchange in the world as of January 2018, facilitating more than 1.4 million transactions per second. Users of Binance Coin receive a discount…
What are Bitcoin ETFs? Bitcoin ETFs are exchange-traded funds that track the value of Bitcoin and trade on traditional market exchanges rather than cryptocurrency exchanges. They allow investors to invest in Bitcoin without having to go through the hassle of using a cryptocurrency exchange while providing leverage to its price. How Do Bitcoin ETFs Work?…
What is Bitcoin Halving? Bitcoin halving is the process of halving the rewards of mining Bitcoin after each set of 210,000 blocks is mined. By reducing the rewards of mining bitcoin as more blocks are mined, bitcoin halving ensures that the amount of bitcoin in circulation does not increase exponentially, which also tends to put…
