What is the European Banking Authority (EBA)? The European Banking Authority (EBA) is an agency that aims to supervise financial integrity and ensure financial stability across the European Union (EU). The EBA is a part of the European System of Financial Supervision (ESFS), which works to ensure that the European single market functions efficiently through…
What is the European Community? The European Community, also called the European Communities or the European Economic Community, was the predecessor of the European Union and aimed to create economic integration among its member states. The European Community was originally composed of three international organizations—European Coal and Steel Community, European Atomic Energy Community, and the…
What is the European Union (EU)? The European Union (EU) is a unified international organization that governs the economic, political, and social policies of 27 member states. Originally formed with the desire to achieve peace in Europe, current EU policies are tailored to ensure the free movement of people, goods, services, and capital among its…
What is Data Warehousing? Data warehousing can be defined as the process of data collection and storage from various sources and managing it to provide valuable business insights. It can also be referred to as electronic storage, where businesses store a large amount of data and information. It is a critical component of a business…
What is Data Science? Data science is the approach of obtaining information and deriving insights out of raw datasets. It is a combination of different tools, machine learning concepts, and algorithms to find hidden patterns in the raw data. Data science is typically used for making decisions and forecasts using machine learning, descriptive analytics, and…
What is Data Smoothing? Data smoothing refers to a statistical approach of eliminating outliers from datasets to make the patterns more noticeable. It is achieved using algorithms to eliminate statistical noise from datasets. The use of data smoothing can help forecast patterns, such as those seen in share prices. During the compilation of data, it…
What is Strategic Financial Management? Strategic financial management is a term used to describe the process of managing the finances of a company to meet its strategic goals. It is a management approach that uses different techniques and financial tools to devise a strategic plan. Strategic financial management ensures that the strategy chosen is implemented…
What is EBITA? EBITA is an acronym that refers to the earnings of a company before interest, tax, and amortization expenses are deducted. Investors use EBITA as an indicator to measure the profitability and efficiency of a company and compare it with similar companies. EBITA includes the cost of capital assets (depreciation) but excludes the…
What is Cross Holding? Cross holding, also referred to as cross shareholding, describes a situation where one publicly-traded company holds a significant number of shares of another publicly-traded company. The shares owned of the second publicly-traded company are referred to as a cross-holding of the first company. Cross holdings present potential valuation problems for financial…
What are Forward Points? Forward points are basis points that are added or subtracted to the spot rate, which is the market price quote of a commodity. If an investor was interested in purchasing a particular commodity, he or she would purchase it at the price it is quoted at the time of purchase. If…
