Irrevocable Proxy
What is an Irrevocable Proxy? An irrevocable proxy is an enforceable power granted by the owner to another party to exercise his voting rights independently, without requiring his consent each time. Typically, most proxies are revocable, but some agreements may include specific clauses that require the proxy to be irrevocable for a specified period. The...
CAPE Ratio
What is the CAPE Ratio? The CAPE Ratio (also known as the Shiller P/E or PE 10 Ratio) is an acronym for the Cyclically-Adjusted Price-to-Earnings Ratio. The ratio is calculated by dividing a company’s stock price by the average of the company’s earnings for the last ten years, adjusted for inflation. Financial Analysts use the Cyclically-Adjusted...
MiFID II
What is MiFID II? MiFID II is the revision of the Markets in Financial Instruments Directive (MiFID), originally published in 2004. It is the foundation of financial legislation for the European Union, designed to assist traders, investors, and other participants in the financial sector. The primary goal of MiFID II is to keep financial markets...
Open Market
What is an Open Market? An open market is an economic system with no trade barriers to free market activities. In an open market, buyers and sellers can do business freely without common market barriers, such as unfair licensing agreements, arbitrary taxes, unionization, subsidies, and other regulations that affect regular market operations. Understanding the Open...
Asset Stripping
What is Asset Stripping? Asset stripping refers to the process of purchasing an undervalued company and then separately selling its assets. The premise of asset stripping is to sell the individual assets of the acquired company at an aggregate higher price than selling the whole company by itself. How It Works Asset stripping...
