What is an ASCOT? The term ASCOT is short for Asset Swapped Convertible Option Transaction. It is an American-style call option to buy back a convertible bond. It falls under the category of financial products called structured products, which are a combination of two or more financial products combined to meet the needs of the…
What is External Debt? External debt refers to the loans raised through foreign lenders, such as foreign commercial banks, foreign governments, and international financial institutions. In the case of external debt, all repayments must be made in the currency in which the debt was issued. On the other hand, internal debt refers to the money…
What is an Express Warranty? An express warranty is a guarantee by a seller to provide replacement or repairs for a faulty product or service within a specified time period after it was purchased. Such warranties are printed on a product’s packaging or are offered as an option to the buyer. Buyers rely on the…
What is an Extraordinary General Meeting (EGM)? An Extraordinary General Meeting (EGM) is a meeting held by a company or an organization to deliberate upon matters that require the urgent attention of senior executives, the board of directors, and all shareholders and cannot be deferred until the next scheduled annual general meeting. The EGM is…
What is an Extraordinary Item? An extraordinary item is an accounting term that refers to an abnormal gain or loss that is not generated from the ordinary business operations of a company, is infrequent in nature, and is unlikely to recur in the foreseeable future. Extraordinary items are disclosed separately in the financial statements of…
What is a Deferment Period? A deferment period is a length of time where the borrower does not need to pay interest or repay the remaining amount on a loan. Before the loan is issued, a contractual agreement is decided between the lender and the borrower regarding the length of the deferment period. The diagram…
What is the Dark Cloud Cover? The dark cloud cover refers to a candlestick pattern in technical analysis that is a bearish reversal signal. It is observed when a “down” candle opens above the close of the previous “up” candle and proceeds to close below the midpoint of the “up” candle within a candlestick chart….
What is a Dark Pool? A dark pool is a financial exchange or hub that is privately organized where trading of financial securities is held. Dark pools are in stark contrast to public financial exchange markets, where there is a high degree of regulation and media attention. Dark pools allow investors to trade without any…
What is Denomination? A denomination is a classification for the face value of a financial instrument. It includes financial instruments, such as bonds, currency notes, coins, etc. In particular, the denomination is a classification used to clarify acceptable payment options in financial trades. Forms of Denomination A denomination is a concept that comes with an…
What is the Darvas Box Theory? The Darvas Box Theory was a trading strategy that was invented by self-taught investor Nicolas Darvas, who used to target stocks with pricing and volume as indicators. It makes the Darvas Box Theory similar to technical analysis, which is a trading discipline that is applied by security traders who…
