MSCI All Country World Index (ACWI)
What is the MSCI All Country World Index (ACWI)? The MSCI All Country World Index (ACWI) is a global equity index that measures the performance of both developed and emerging markets. By the end of 2019, it covers more than 3,000 stocks globally. It is a market capitalization-weighted index developed by MSCI Inc., a publicly...
Mortgage Insurance
What is a Mortgage Insurance? Mortgage insurance is a type of insurance that compensates the lenders of mortgage loans or bonds when the borrowers are not able to meet their obligations. It is also known as mortgage default insurance and mortgage indemnity guarantee (MIG). How Mortgage Insurance Works Mortgage insurance protects mortgage lenders...
Liquidity Ratio
What is a Liquidity Ratio? A liquidity ratio is a type of financial ratio used to determine a company’s ability to pay its short-term debt obligations. The metric helps determine if a company can use its current, or liquid, assets to cover its current liabilities. Liquidity ratios focus on short-term financial health, whether a company...
Bonds vs Stocks
What are Bonds vs Stocks? For prospective investors and many others, it is important to distinguish between bonds vs stocks. Two of the most common asset classes for investments are bonds, also known as fixed-income instruments, and stocks, also known as equities. Both types of investments have a deep history within the capital markets. To...
Discount for Lack of Marketability (DLOM)
What is the Discount for Lack of Marketability (DLOM)? The discount for lack of marketability (DLOM) is applied to private companies when valuing them. It relates to the company not being publicly traded on a financial exchange. Publicly-traded companies are perceived to have a “market” since the shares can be bought or sold in a...
