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…
Who is David Tepper? David Tepper is known as one of the best hedge fund managers of his generation, generating steady returns for client investors over many years. He is the founder and president of the Appaloosa Management hedge fund, which managed around $13 billion as of July 2020. In 2018, Tepper bought the Carolina…
What is the DAX Stock Index? The DAX (Deutscher Aktien Index) is a stock index based out of Germany that represents the 30 biggest German companies that trade on the Frankfurt Exchange. The index value is calculated every second based on Xetra technology. DAX Stock Index Explained The DAX Index tracks 30 large and actively…
What is Dollar-Cost Averaging (DCA)? Dollar-cost averaging (DCA) is an investment strategy in which the intention is to minimize the impact of volatility when investing or purchasing a large block of a financial asset or instrument. It is also called unit cost averaging, incremental averaging, or cost average effect. In the UK, it is referred…
What is Downside Risk? Downside risk refers to the probability that an asset or security will fall in price. It is the potential loss that can result from a fall in the price of an asset as a result of changing market conditions. Downside risk can also be described as a statistical measure that aims…
What is an Endowment? An endowment is a structure used by large non-profit organizations – such as hospitals, museums, and universities – to raise donation capital in order to fund its operations on an ongoing basis. The endowment structure enables such non-profit organizations to manage a set of financial assets through which investment returns can…
What is an Engagement Letter? An engagement letter refers to a legal document that defines the relationship between a business providing professional services (accounting, consulting, legal, etc.) and their clients. It sets the terms of the agreement between two parties and includes details such as the scope, fees, and responsibilities, among others. An…
What is Equity Financing? Equity financing refers to the sale of company shares in order to raise capital. Investors who purchase the shares are also purchasing ownership rights to the company. Equity financing can refer to the sale of all equity instruments, such as common stock, preferred shares, share warrants, etc. Equity financing…
