What is an Esoteric Debt? An esoteric debt is a complex investment vehicle that is offered to a unique group of investors, as they are difficult to value because of their distinctive pricing and structure. The best example that can be given is that of a credit default swap derivative that resulted in the 2008…
What is an Equity-Linked Note (ELN)? An equity-linked note (ELN) refers to a debt instrument that does not pay a fixed interest rate. Instead, it is a type of structured product whose return is linked to the performance of its underlying equity. The equity tied to an equity-linked note can be a security, a basket…
What is an Escrow Agreement? An escrow agreement refers to a contract that outlines the terms and conditions of a transaction for something of value – such as a bond, deed, or asset – which is held by a third party until all conditions have been met. The terms and conditions outlined in the agreement…
What is an Emerging Market Economy? An emerging market economy refers to a country that is in the process of developing its economy to become more advanced. It generates low to middle per capita income and is rapidly expanding due to high production levels and significant industrialization. Emerging market economies make up 80% of the…
What is the Endogenous Growth Theory? The endogenous growth theory is the concept that economic growth is due to factors that are internal to the economy and not because of external ones. The theory is built on the idea that improvements in innovation, knowledge, and human capital lead to increased productivity, positively affecting the economic…
What is Ethical Investing? Ethical investing is an investment strategy where the investor’s ethical values (moral, religious, social) are the primary objective, along with good returns. With suspicious and illegal investment deals on the rise, many investors are starting to insist that companies they invest in are socially responsible. This means treating their employees with…
What is an Emerging Industry? An emerging industry is an industry that is in the early stages of development. The product, service or technology that the emerging industry is formed around may not be widely known by many people, and therefore may not have an operating ecosystem or a strong customer base. Industry Life Cycle…
