What is the Heads of Agreement? The heads of agreement, also known as the head of terms, is a document summarizing the terms of a proposed agreement like a property sale, partnerships, joint ventures, etc. Typically, a heads of agreement is non-binding, which means that neither party is obligated to agree to the terms listed…
What is Headline Inflation? Headline inflation is the total inflation in an economy. The headline inflation figure includes inflation in a basket of goods that includes commodities like food and energy. It is different from core inflation, which excludes food and energy prices while calculating inflation. Food and energy are not included in core inflation…
What is the Headline Effect? The headline effect is the impact of headlines, news, and narratives on asset prices as well as the economy in general. The effect can be both positive or negative for asset prices. The effect runs counter to modern finance theory that gives no importance to headlines or narratives as causal…
What is Heteroskedasticity? Heteroskedasticity refers to situations where the variance of the residuals is unequal over a range of measured values. When running a regression analysis, heteroskedasticity results in an unequal scatter of the residuals (also known as the error term). When observing a plot of the residuals, a fan or cone shape indicates the…
What are Headline Earnings? Headline earnings are a restatement of a company’s profit that removes the effect of one-time charges, write-downs, cost-cutting, and other extraordinary items like tax liabilities. Another way of looking at headline earnings is that it is the part of a company’s earnings that pertains to its core business activities. It is…
What is a Hedge Fund Manager? A hedge fund manager is an individual who makes investment decisions on behalf of their clients, called limited partners (“LPs”), using aggressive and sophisticated investment strategies. Hedge fund managers fall into the buy side within the world of capital markets. This means that hedge funds, like other asset managers,…
What is Heterodox Economics? Heterodox economics refers to economic theories that diverge from mainstream or neoclassical principles. While most economists accept mainstream economic theories, they tend to rely on neoclassical theories of market equilibriums and rationality. In contrast, heterodox economics includes more fringe ideologies that go against fundamental neoclassical beliefs. Due to the diverse nature…
What is the Iraqi Dinar (IQD)? The Iraqi dinar refers to Iraq’s national currency and is represented by ISO code IQD. Iraq’s Central Bank issues the Iraqi dinar, which earlier consisted of 1000 fils. However, fils are no longer used because inflation has rendered them obsolete, and now dinars have become the smallest currency unit…
What is the Mexican Peso (MXN)? The Mexican Peso is the national currency of Mexico and is abbreviated as MXN. It originated from the Spanish dollar between the 15th and 19th centuries. While in the Americas, MXN is the third most exchanged currency after the US dollar and the Canadian dollar, it is the main…
