What is Forfaiting? Forfaiting is the provision of medium-term financial support for the import and export of capital goods. The forfaiter is a third party to transactions that takes on certain risks from importers and exporters in return for a margin. The forfaiter operates similarly to a central clearing counterparty in the OTC markets. Forfaiting…
What is Foreign Investment? Foreign investment is when a domestic investor decides to purchase ownership of an asset in a foreign country. It involves cash flows moving from one country to another to execute the transaction. If the ownership stake is large enough, the foreign investor may be able to influence the entity’s business strategy….
What is a Folio Number? A folio number is an identification code for one’s own account in a mutual fund. Similar to a bank account number, a folio number helps identify the investors within a fund. It also records the amount of money each investor has allocated within the fund, along with the contact and…
What is the Fiscal Multiplier? The fiscal multiplier measures the impact of a fiscal stimulus on the Gross Domestic Product (GDP) of an economy. Fiscal stimulus is the increase in government spending to stimulate the economy. The fiscal multiplier should not be confused with the monetary multiplier, which is the impact of change in money…
What is Double Entry? Double entry refers to a system of bookkeeping that, while quite simple to understand, is one of the most important foundational concepts in accounting. Basically, double-entry bookkeeping means that for every entry into an account, there needs to be a corresponding and opposite entry into a different account. It will result…
What is a Currency Pair? A currency pair is a quotation of two different currencies, where one is quoted against the other. The first listed currency within a currency pair is called the base, while the second currency that is the benchmark is called the quote. Currency pairs are meant to be compared against one…
What are Discontinued Operations? Discontinued operations is a term used in accounting to refer to parts of a company’s business that have been terminated and are no longer operational. In accounting, discontinued operations are listed separately on financial statements from continuing operations. Reasons for Discontinued Operations Parts of a company’s business or product line will…
What is a Descending Triangle? A descending triangle refers to a bearish chart pattern used in technical analysis that is characterized by a descending upper trendline and a second, flatter horizontal trendline, which is lower than the first. Chart Patterns: The Basics Behind Descending Triangles Descending triangles, along with terms such as ascending triangles, head-and-shoulders,…
What is a Domestic Corporation? A domestic corporation refers to a company that is incorporated in and conducts business affairs in its own country. Domestic corporations are often compared with and contrasted to foreign corporations, which is particularly significant when considering corporate taxation rates. What is a Corporation? A corporation is an organization authorized by…
Building Your Personal Development Plan In order for you to be happy in your job, you need a personal development plan. Of course, your team members are no different; everyone wants to know that they’re making progress in their career. They need to know they’re working from a plan; that there’s a goal they’re working toward,…
