Financial Sector
What is the Financial Sector? Key Roles and Institutions The financial sector refers to the businesses and institutions that manage money and provide intermediary services to transfer and allocate financial capital in an economy. Understanding the Financial Sector Every business expansion, home purchase, and investment depends on a financial regulatory framework that moves money efficiently....
Index-Linked Bond
What is an Index-Linked Bond? An index-linked bond is used to protect the income earned by bond investors against inflation. Index-linked bonds are linked to a country’s inflation index. For example, the U.K. issues index-linked bonds called linkers that are linked to the Retail Price Index (RPI). Similarly, Canada issues Real Return Bonds (RRBs) that...
Frothy Market
What is a Frothy Market? A frothy market, a common Wall Street jargon, refers to a market condition where asset prices are notably detached from their true intrinsic value. Simply put, a frothy market is a market that is exhibiting unsustainable rapid price appreciation. If unresolved, it precedes a market bubble and a subsequent market...
Hard Stop
What is a Hard Stop? A hard stop is an instruction from a client to their broker which informs them to sell units of a security when the market price declines to a specific level. Hard stops are used to minimize risk and reduce potential losses in the financial market when price fluctuations and unexpected...
Klinger Oscillator
What is the Klinger Oscillator? The Klinger oscillator is a financial tool that was designed by Stephen Klinger in 1977 to predict long-term trends in money flow while also detecting short-term fluctuations. In addition, it predicts price reversals in a financial market by extensively comparing volume to price. Volume refers to how many units of a...
