What is the Emerging Market Bond Index (EMBI)? The Emerging Market Bond Index (EMBI) is a benchmark index that measures the bond performance of emerging countries and their respective corporate organizations. The EMBI was first published by leading investment bank J.P. Morgan. An emerging market is a market economy that is currently in the growth…
What is Knowledge Engineering? Knowledge engineering is a field of study that is responsible for all technical, societal, and scientific aspects involved in the construction of artificial intelligence (AI). Individuals working in the field of knowledge engineering are called “knowledge engineers.” They are in charge of building computer systems that are able to execute cognitive…
What is Kimchi Premium? Kimchi premium is the difference in crypto asset prices between South Korean exchanges and foreign exchanges. Seen mostly in bitcoin, prices are noticeably higher in South Korea compared to other Western and Asian nations. The visible difference in South Korean bitcoin prices stimulated an influx in crypto trading. The price difference…
What is the Cayman Islands Dollar (KYD)? The Cayman Islands Dollar (KYD) is the national currency of the Cayman Islands. Located just south of Cuba, the Caribbean country is composed of three major islands – Grand Cayman, Little Cayman, and Cayman Brac. Recognized as one of the great “tax havens” of the world because the…
What is Divergence? Divergence is when the asset price moves in the direction opposite to what a technical indicator indicates. When a stock is diverging, it signals weaker price trends and the beginning of a reversal. The two types of divergence are: Positive: A positive divergence is a sign of higher price movement in the…
What is Dispersion? Dispersion is a term that describes the spread of values against a specific variable. Dispersion can be measured through: Range Variance Standard deviation Within the realm of finance, dispersion is used to determine the potential returns on an investment, as well as the inherent risk of a portfolio of investments. Thus, it…
What is a Disbursement? A disbursement is an act of paying out money – especially from a public or dedicated fund. It often refers to the payment made for a client to a third party, as reimbursement will be sought from the client subsequently. Disbursement leads to cash outflows. If disbursements are higher than revenues…
What is a Dormant Account? A dormant account refers to an account that has shown no activities – such as deposits and withdrawals – for a long period of time. Financial institutions need to make attempts to contact the owners of dormant accounts. If a dormant account has been unclaimed for a certain period of…
What is Depreciated Cost? Depreciated cost is the remaining cost of an asset after reducing the asset’s original cost by the accumulated depreciation. Understanding the concept of a depreciation schedule and the depreciated cost is important for both accounting and valuation purposes. Depreciation and Depreciated Cost In accounting, depreciation is an accounting process of reducing…
What is Decoupling? Decoupling represents the creation of gaps. In finance, decoupling happens when different asset classes or markets that typically demonstrate positive correlations start to move in opposite directions. In organizational studies, decoupling takes place when there are gaps between formal policies and actual practices in an organization. Eco-economic decoupling considers the environmental impacts…
