What is the Japan Exchange Group? Japan Exchange Group is a Tokyo-based financial services corporation that operates different financial instruments exchange markets. It facilitates the trading of Japan’s financial securities under the country’s Financial Instruments and Exchange Act. It was established in 2013 following the merger between Tokyo Stock Exchange Group and Osaka Securities Exchange….
What is the Securities and Exchange Commission (SEC)? The US Securities and Exchange Commission, or SEC, is an independent agency of the US federal government that is responsible for implementing federal securities laws and proposing securities rules. It is also in charge of maintaining the securities industry and stock and options exchanges, as well as…
What is an Equity Syndicate? An equity syndicate refers to a group of investors who come together to determine the price and sell new IPOs to the public. The syndicate takes various considerations such as risk and the financial status of the company when deciding on the price of the floated IPO. Equity syndicates are generally…
What is a Spot Price? The spot price is the current market price of a security, currency, or commodity available to be bought/sold for immediate settlement. In other words, it is the price at which the sellers and buyers value an asset right now. Although spot prices can vary by time and geographic regions, the prices…
What is Day Trading? The main attribute of day trading is that the purchasing and selling of securities occurs within the same trading day. It means that all trading positions are liquidated at the end of a trading day. The main goals of day trading are discovering and leveraging short-term market inefficiencies. Unlike many investors,…
What is Pre Money Valuation? Pre money valuation is the equity value of a company before it receives the cash from a round of financing it is undertaking. Since adding cash to a company’s balance sheet increases its equity value, the post money valuation will be higher because it has received additional cash. …
What is Post Money Valuation? Post money valuation is the equity value of a company after it receives the cash from a round of financing it is undertaking. Since adding cash to a company’s balance sheet increases its equity value, the post money valuation will be higher than the pre money valuation because it has…
What Does Undervalued Mean? An undervalued asset is an investment that can be purchased for less than its intrinsic value. For example, if a company has an intrinsic value of $11 per share but can be purchased for $8 per share, it is considered undervalued. Intrinsic Value An investment is either overvalued or undervalued relative…
What Does Overvalued Mean? An overvalued asset is an investment that trades for more than its intrinsic value. For example, if a company with an intrinsic value of $7 per share trades at a market value $13 per share, it is considered overvalued. Intrinsic Value An investment is either undervalued or overvalued compared to its…
What is the CDS Payout Ratio? The CDS Payout Ratio is the proportion of the insured amount that the holder of the credit default swap is paid by the seller of the swap if the underlying asset defaults. How It Works Suppose an investor holds €10,000,000 worth of 5-year Spanish government bonds. The bonds pay…
