What is Equity Co-Investment? An equity co-investment (or co-investment) is a minority investment made by the co-investor into a company. The investment is made alongside a financial sponsor. An example of a co-investor includes institutional investors such as an insurance company, pension fund, or endowment. The term minority investment means the co-investor owns less than…
What is a Green Bond? A green bond is a debt security issued by an organization for the purpose of financing or refinancing projects that contribute positively to the environment and/or climate. A green bond is alternatively known as a climate bond. How It Works Green bonds are fundamentally the same as conventional bonds: a…
What is an Exchange-Traded Note (ETN)? An exchange-traded note (ETN) is a loan instrument issued by a financial entity, such as a bank. It comes with a set maturity period, usually from 10 to 30 years. It can be traded based on demand and supply. Unlike other debt tools, exchange-traded notes will not produce any…
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…
