What is a Problem Loan? A problem loan is often referred to as a problem credit, or an impaired asset since, counterintuitively, loans are an asset for a creditor (as opposed to a liability for the borrower). In simple terms, a problem loan is one that poses a “challenge” for a lender. It may occur…
What is an NFT? NFT is an acronym for Non-Fungible Token, a digital token that is highly unique that is commonly used to prove ownership and authenticity for an underlying asset, digital or physical. NFTs are a form of digital signature that is publicly verifiable because it is stored on a distributed digital ledger, called…
What is Minting Crypto? Minting crypto is the process of generating new coins by authenticating data, creating new blocks, and recording the information onto the blockchain through a “proof of stake” protocol. Both new units of a cryptocurrency and Non-Fungible Tokens (NFTs) can be minted this way. Newly minted cryptocurrency is added to the circulation…
What is a Continuation Pattern? A continuation pattern, commonly referenced in technical analysis, is a pattern that forms within a trend that generally signals a trend continuation. In contrast to reversal patterns, continuation patterns signal a temporary consolidation in the middle of a trend. Common Types of Continuation Patterns Continuation patterns may be identified on…
What is a Percentage Lease? A percentage lease, a type of lease commonly used in commercial real estate, is a lease arrangement where the tenant agrees to pay a predetermined rent (the base rent) in addition to a percentage of sales made when conducting business on the rental property to the landlord. How a Percentage…
What is a Pennant Pattern? A pennant pattern, referred to technical analysis, is a continuation pattern that is seen when a security experiences a large movement to the upside or downside, followed by a consolidation period, before subsequently moving in the same direction. Key Characteristics When looking at a pennant pattern, one will identify three…
What is Reflation? Reflation refers to a fiscal or monetary policy (or policies) aimed towards stimulating the economy (i.e., increasing the level of economic activity) and combating deflation. It is used to restore long-run inflation, reduce the time span of an economic contraction, or reignite an expansionary business cycle. Reflation may also be used to describe…
What is Paper Trading? Paper trading is a form of simulated trading where an individual makes trades without committing real money. This is done by writing the trade on paper (hence the term “paper trading”) rather than placing a real order through a brokerage. Understanding Paper Trading Paper trading is frequently used by first-time traders…
