What are the Basel Accords? The Basel Accords refers to a set of banking supervision regulations set by the Basel Committee on Banking Supervision (BCBS). They were developed over several years between 1980 and 2011, undergoing several modifications over the years. The Basel Accords were formed with the goal of creating an international regulatory framework…
What is an Audit? An audit refers to an examination of the financial statements of a company. Audits are conducted to provide investors and other stakeholders with confidence that a company’s financial reports are accurate. Audits also provide regulators with the assurance that a company is adhering to the appropriate legal and regulatory standards. It’s…
What are Management Fees? Management fees are fees paid to professionals entrusted with managing investments on a client’s behalf. Typically determined as a percentage of the total assets under management (AUM), management fees can cover a variety of expenses, including portfolio management, advisory services, and administrative costs. Management fees are present in almost all investment…
What is the Euro Interbank Offered Rate (Euribor)? The Euro Interbank Offered Rate, or Euribor, is a benchmark interest rate that reflects the average rate at which major banks in the Eurozone lend unsecured funds to one another. It’s published daily by the European Money Markets Institute (EMMI) and plays a key role in pricing…
What is a Market Order? Market order refers to a request made by an investor to purchase or sell a security at the best possible price. Market orders are usually executed by a broker or brokerage service on behalf of their clients who want to take advantage of the best price available on the current…
What is Momentum? Momentum is the observation that financial assets trending strongly in a certain direction will continue to move in that direction. The concept of momentum is based on similar theories in physics, where an object in motion tends to stay in motion unless disrupted by an external force. In finance, momentum refers to…
What is a Market Indicator? A market indicator is a quantitative tool that is used by traders to interpret financial data in order to forecast stock market movements. Market Indicators vs. Technical Indicators Market indicators are considered a subset of technical indicators, but the two share fundamental differences. Market indicators are calculated in the same…
What is a Market Leader? Market leader refers to a company that holds the largest market share in the sector that it operates in. A market leader will typically enjoy the largest fraction of total sales in a given market. A market leader tends to outperform its competitors in metrics that measure business success. The…
What is Market Manipulation? Market manipulation refers to artificial inflation or deflation of the price of a security. Also known as price manipulation or stock manipulation, it involves the literal manipulation of a financial market for personal gain. It means influencing the behavior of the securities with the intent to do so. Market manipulation can…
