Capital Markets
What are Capital Markets? Capital markets are the exchange system platform that transfers capital from investors who want to employ their excess capital to businesses that require the capital to finance various projects or investments. Types of Capital Markets Capital markets primarily feature two types of securities: equity securities and debt securities. Both are forms…
Stochastic Oscillator
What is the Stochastic Oscillator? The Stochastic Oscillator is an indicator that compares the most recent closing price of a security to the highest and lowest prices during a specified period of time. It gives readings that move (oscillate) between zero and 100 to provide an indication of the security’s momentum. The stochastic readings are…
Capital Investment Model Template
Capital Investment Model Template This capital investment model template will help you calculate key valuation metrics of a capital investment including the cash flows, net present value (NPV), internal rate of return (IRR), and payback period. Below is a preview of the template: Download the Free Template Enter your name and email in the form…
Pivot Points
What are Pivot Points? Pivot points refer to technical indicators used by day traders to identify potential support and resistance price levels in a securities market. They are based on the previous day’s high, low, and closing prices. Traders use pivot points and the support and resistance levels they provide to determine potential entry, exit,…
Chaikin Money Flow (CMF)
What is the Chaikin Money Flow (CMF)? The Chaikin Money Flow (CMF) is an indicator created by Marc Chaikin in the 1980s to monitor the accumulation and distribution of a stock over a specified period. The default CMF period is 21 days. The indicator readings range between +1 and -1. Any crosses above or below…
Protective Put
What is a Protective Put? A protective put is a risk management and options strategy that involves holding a long position in the underlying asset (e.g., stock) and purchasing a put option with a strike price equal or close to the current price of the underlying asset. A protective put strategy is also known as…
Securitization
What is Securitization? Securitization is a risk management tool used to reduce the idiosyncratic risk associated with the default of individual assets. Banks and other financial institutions use securitization to lower their risk exposure and reduce the size of their overall balance sheet. The Securitization Process Securitization can be best described as a two-step process:…
Development Impact Bond
What is a Development Impact Bond? A development impact bond is a type of financial security that is used to finance development programs in low-resource countries by attracting private investors. Development impact bonds are considered a sub-type of social impact bonds. Similar to other social impact bonds, development impact bonds are new financial instruments that…
Equal-Weighted Index
What is an Equal-Weighted Index? An equal-weighted index is a stock market index – comprised of a group of publicly traded companies – that invests an equal amount of money in the stock of each company that makes up the index. Thus, the performance of each company’s stock carries equal importance in determining the total…
