What is Venture Capital? Venture capital is a type of private equity investing that involves investment in earlier-stage businesses that require capital. In return, the investor will receive an equity stake in the business in the form of shares. Companies that raise venture capital do so for a variety of reasons, including to scale the…
What is LGD (Loss Given Default)? LGD (Loss Given Default) is a lender’s (creditor) ‘s projected loss in the event that a borrower triggers an event of default. LGD is a measure used by financial institutions and other private, non-bank lenders to help calculate the projected profitability of a loan (often referred to as a credit…
How to Trade Cryptocurrency The invention of Bitcoin, Ethereum, and other cryptocurrencies has ushered in a new asset class that has proven lucrative for many traders. Firstly, we need to make the distinction between investing and trading—the biggest difference being the time horizon. With trading in any asset, the time horizon tends to be short-term…
What Impact Does Cryptocurrency Have on the Environment? One of the most common criticisms of cryptocurrency is its negative impact on the environment. Some critics have also used this criticism to cast the entire Decentralized Finance (DeFI) space in a negative light. While it is true that we cannot ignore the negative environmental impact associated…
What is BNPL (Buy Now, Pay Later)? BNPL (Buy Now, Pay Later) is unsecured consumer credit and an increasingly popular fintech-enabled payment option, most commonly offered on e-commerce platforms. The history of BNPL traces back to the installment plan – a way to pay for large purchases over time by spreading it over a number…
What is Financial Crime Risk Management? Financial crime risk management is the practice of actively attempting to identify and prevent financial crime. It is done by identifying suspicious activity and vulnerabilities that an organization possesses in order to mitigate the impact of financial crime. There are various tools that can assist with financial crime risk…
What is the Future of Cryptocurrency? Cryptocurrency and its future are a heavily debated and controversial topic. As a relatively nascent concept, it has been quite polarizing, even among the most influential and respected voices. The future is obviously uncertain, but this article looks to discuss the viewpoints of both camps. Cryptocurrency maximalists argue that…
What is Buying the Dip? Buying the dip is a strategy used by investors and traders that involves buying or adding to an existing long position of an asset during a period of downward price pressure, hopefully with the opportunity for the price to recover. This strategy is commonly seen for assets that are fundamentally…
What is the ISM Manufacturing Index? The ISM Manufacturing Index, commonly known as the ISM Manufacturing Purchasing Managers Index (ISM PMI), is a monthly gauge of the level of economic activity in the manufacturing sector in the United States versus the previous month. The ISM Manufacturing Index is published at the beginning of each month…
What is Debt Origination in the Context of Capital Markets? Debt origination is the process that larger borrowers, such as corporations, financial institutions, and government entities, go through in order to raise debt. Generally speaking, the amount and frequency that the borrowers are looking to raise exceed the threshold for a traditional financial institution or…
