Double Bottom
What is a Double Bottom? A double bottom is a type of price movement identified in technical analysis where there is a fall in price led by gain and then another drop (similar to the previous drop), and finally, a rise in price from a shape that is similar to the letter W. An accurate...
Eurodollar
What is a Eurodollar? A Eurodollar refers to funds that are denominated in U.S. dollars and held in foreign banks or overseas branches of American banks. The funds can be in the form of cash deposits or term deposits. These deposits were originally held in Europe, hence the name “Eurodollar” (i.e., U.S. dollars held in...
Face Value
What is Face Value? The value mentioned on an instrument like a coin, stamp, or bill is called the face value of that instrument. For example, a $100 bill comes with a face value of $100. In calculus, the face value of 3 in 546738 is 3 itself. Significance of Face Value In the era...
Warrant
What is a Warrant? A warrant gives the holder the right to purchase a company’s stock at a specific price and a specific date. In other words, a warrant is a long-term option to buy a given stock at a fixed price. Such a type of warrant is called a call warrant, which gives the...
Margin Debt
What is Margin Debt? Margin debt represents the amount that an investor owes a broker in their margin account. When a broker approves a margin account for an investor, the margin account is granted a line of credit that can be used to purchase securities. The brokerage charges an interest rate on the margin debt,...
