What is Shadow Pricing? Shadow pricing is the practice of assigning a monetary value to an item, commodity, or service that is not ordinarily bought and sold in any marketplace. Because no actual price can be assigned by trading in a market, the true value is unknown and can only be estimated. The estimation is…
What is the Shadow Banking System? The shadow banking system is the broad collection of financial institutions and financial markets that offer the same type of services as commercial banks but that are not within the regulatory environment that traditional banks are subject to. Elements of the shadow banking system include mortgage lending companies, repurchase agreements,…
What is a Share Certificate? A share certificate is an investment instrument that is very much like a certificate of deposit (CD). There are two primary differences between share certificates and certificates of deposit. The first is that CDs are offered by banks, while share certificates are only offered through credit unions. The…
What is the Service Sector? The service sector is the sector of the economy that produces and offers services. According to the tri-sector macroeconomic theory, there are three major economic sectors – primary, secondary, and tertiary. Major Economic Sectors 1. Primary Sector The primary sector is composed of industries engaged in the business of gathering…
What is the Long-Run Supply? The long-run supply is the supply of goods available when all inputs are variable. It means that in the long run, all property, plant, and equipment expenditure is variable. Furthermore, in the long run, the number of producers in the market is not fixed. Therefore, new firms will enter the…
What is Short-Run Supply? The short-run is the time period in which at least one input is fixed – generally property, plant, and equipment (PP&E). An increase in demand can only be met by increasing the usage of variable factors of production. Therefore, short-run supply is the supply given the firm’s investment in fixed assets….
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…
