What is the MSCI Emerging Markets Index? The MSCI Emerging Markets Index is used to measure the stock market performance within emerging countries. Established in the 1960s, It is one of many indexes created by Morgan Stanley Capital International (MSCI). The index captures mid to large-cap companies across over 12 emerging countries. It also represents…
What is a Digital Option? A digital option is a form of option that allows traders to manually set a strike price. The digital option provides the traders with a fixed payout in the case when the market price of the underlying asset exceeds the strike price. The feature of setting the strike price manually…
What is a Digital Wallet? A digital wallet refers to software, an electronic device, or an online service that enables individuals or businesses to make transactions electronically. It stores the payment information of users for different payment modes on various websites, along with other items such as gift coupons and driver’s licenses. A digital wallet…
What is a Shooting Star? A shooting star is a specific technical analysis formation or pattern that occurs in candlestick charting. It is interpreted as signaling an impending bearish reversal to the downside. To be properly interpreted, a shooting star formation is only considered valid when it occurs following a recognizable uptrend of some duration…
What is Delivered at Frontier (DAF)? Delivered at frontier (DAF) is a term used in international shipping contracts when the seller is required to deliver goods to a border location. It is the responsibility of the seller to cover all the costs associated with transporting the goods until the drop-off point for the buyer. Hence,…
What is the Depository Trust Company (DTC)? The Depository Trust Company (DTC), a US-based corporation, is a central securities depository accepting deposits from over 65 countries. It provides book-entry and depository services, transfer and pledge of securities, operates a settlement system for securities, and also performs associated income distributions. The DTC enables record-keeping of balances…
What is Dilution? Dilution refers to the reduction in the percentage of existing shareholders’ ownership in a company when it issues new shares of stock. It is also referred to as equity or stock dilution. Dilution occurs when optionable securities, such as employee stock options, are exercised. How Dilution Works When a company goes public,…
What is the Directional Movement Index (DMI)? The Directional Movement Index (DMI) is an indicator that helps in determining the direction the asset price is moving and the strength of the price movement. It does so by comparing the current price with previous lows and highs, drawing lines of positive directional movement (+DI) and negative…
What is Portfolio Planning? Portfolio planning is the process of strategizing the construction of an investment portfolio. The investment portfolio should be encompassing of the investor’s risk tolerance, investment time horizon, and expected return of the portfolio. What is the Portfolio Planning Process? An investment manager is very unlikely to produce a good result for…
What is Noncumulative? Noncumulative refers to a type of preferred stock for which dividends are not accumulated over time. The company is not obliged to pay noncumulative stockholders any unpaid dividends. For example, if a company fails to pay dividends over two years and pays out in the third, noncumulative stockholders only have claims on…
