What are the Four Asian Tigers? Four Asian Tigers is a term given to the economies of four countries – Hong Kong, Taiwan, Singapore, and South Korea. Driven by exports and rapid industrialization, the Four Asian Tigers have steadily retained a high rate of economic growth since the 1960s, joining the ranks of the richest…
What is a Foreign Fund? A foreign fund refers to a fund that invests in businesses outside the country of origin of the investor. They can be exchange-traded funds, closed-end funds, or mutual funds. They are sometimes referred to as international funds. Foreign funds provide private investors with access to overseas markets. Foreign investment introduces…
What is Foreign Aid? Foreign aid refers to the international movement of money, services, or goods from governments or international institutions for the benefit of the receiving country or its citizens. Foreign aid can be fiscal, military, or humanitarian and is considered one of the significant sources of foreign exchange. Foreign aid is the voluntary…
What is Foreign Debt? Foreign debt refers to the money that a government, an organization, or a household borrows from the government or private lenders of another country. The obligations to organizations such as the World Bank and the Asian Development Bank (ADB) are also categorized as foreign debt. The short-term debt can be used…
What is the Clientele Effect? The clientele effect is a theory that states that different policies attract different types of investors, and changes to the policies will cause a shift in demand for the company’s stock by investors, impacting its share price. In other words, the clientele effect is the existence of groups of investors…
What is Sovereign Debt? Sovereign debt is the government debt of a country, a sovereign nation. It is also referred to as government debt, national debt, public debt, or country debt. The sovereign debt of a country consists of all its debt liabilities to both domestic and foreign creditors. Technically, the sovereign debt of a…
What is a Trading Halt? A trading halt refers to a temporary stoppage of equity trading in accordance with regulatory authority or stock exchange rules. The stoppage may occur for a single stock, an exchange, or a group of exchanges. Significant news about a company – whether it be good news or bad news –…
What is Securities Lending? Securities lending is the act of lending or loaning a financial security, a stock, a bond, or a derivative, to a firm or an investor. It involves the borrower providing collateral for the security of the loan. The collateral can be in the form of either cash, bonds, shares, or a letter…
What is Trading Below Cash? Trading below cash takes place when the market capitalization of a company is lower than its cash holdings net of liabilities. It is a term often used in the investment industry. Such a situation usually happens to companies with uncertain or pessimistic outlooks. Understanding Trading Below Cash The market value…
What is a High-Ratio Loan? A high-ratio loan is a type of loan with a high loan value relative to the value of the property used as collateral. High-ratio loans usually carry higher interest rates than loans with lower ratios. There is no certain standard for high-ratio loans, but loans with LTV exceeding 80% are…
