What is Hong Kong SAR, China? Hong Kong SAR is one of the metropolitan areas in the People’s Republic of China (PRC). As a premier business and financial center, Hong Kong is able to retain its monetary independence, as well as the currency-board type arrangement for its interchange rate. It is because Hong Kong maintains…
What is the Hong Kong Monetary Authority (HKMA)? The Hong Kong Monetary Authority (HKMA) is a government entity that was founded on April 1, 1993 as the de facto central bank and Hong Kong’s currency board. HKMA was established following the merger of the Office of the Commissioner of Banking and the Office of the…
What is Horizontal Equity? Horizontal equity is an economic theory that is used to assess the fairness of tax burden across a population. The theoretical underpinning of horizontal equity is that the amount of taxes paid should be equal for people in similar circumstances, regardless of the tax system in place. A tax system is…
What are Small Caps? Small caps refer to companies with a market capitalization generally ranging from $300 million to $2 billion. The market capitalization denotes the fair market value of the outstanding shares of any company that trades on a stock exchange. However, a company’s market capitalization will constantly change due to the fluctuations in…
What is Horizontal Spread? A horizontal spread is a type of options spread that involves buying the same underlying stocks at the same price, but with different expiration duration. The strategy helps the trader earn a profit from the price fluctuation of short-term events or the changes in volatility over time. It is achieved by…
What is the Kairi Relative Index (KRI)? The Kairi Relative Index (KRI) is a type of oscillator indicator. It measures the deviation of an asset price from its daily average over a certain period of time, usually 10 to 20 days. The index was originally developed in Japan and now serves as a tool for…
What is a Simple Random Sample? A simple random sample is an unbiased surveying technique that defines a subgroup of a population where the prospect of getting selected is equal for all the members of the population. Here, the sample selection process is entirely based on chance or luck. A simple random sample will yield…
What is Smart Money? Smart money refers to the capital that institutional investors, central banks, and other professionals or financial institutions control. It is managed by expert investors who can foresee market trends and make most of the profits. Smart money was originally a gambling term, where it refers to the gamblers that have extensive…
What are Smart Contracts? Smart contracts refer to computer protocols that digitally facilitate the verification, control, or execution of an agreement. Smart contracts run on the blockchain platform, which will process all the transactions in a contract; hence, middlemen are not required to execute the transactions. Similar to traditional contracts, smart contracts define rules and penalties around…
What is a Smart Beta ETF? Smart beta ETF, a type of exchange-traded fund, that uses a blend of active and passive investing. The fund follows a rule-based approach for selecting investments to be included in a fund portfolio. A smart beta ETF expands on a traditional ETF, modifying the investments in the fund portfolio…
