What is Downside Risk? Downside risk refers to the probability that an asset or security will fall in price. It is the potential loss that can result from a fall in the price of an asset as a result of changing market conditions. Downside risk can also be described as a statistical measure that aims...
What is an Endowment? An endowment is a structure used by large non-profit organizations – such as hospitals, museums, and universities – to raise donation capital in order to fund its operations on an ongoing basis. The endowment structure enables such non-profit organizations to manage a set of financial assets through which investment returns can...
What is the Dotcom Bubble? The dotcom bubble is a stock market bubble that was caused by speculation in dotcom or internet-based businesses from 1995 to 2000. The companies were largely those with a “.com” domain on their internet address. The dotcom bubble’s origins can be traced to the launch of the World Wide Web...
What is Divestment? Divestment is the sale of an existing business or an asset class that doesn’t perform or meet the expectations of the company or a country. Divestment is also referred to as divestiture. Reasons for Divestment Divestment is a difficult decision for a business. However, there are many reasons why...
What is Deregulation? Deregulation is the removal or reduction of government regulations in a specific industry. The goals are to allow industries to operate businesses more freely, make decisions efficiently, and remove corporate restrictions. Overall, the main objective is to remove barriers to competition so that a particular industry can compete in the international market...