Dissenters’ Rights
What are Dissenters’ Rights? Dissenters’ rights – part of a state’s business law – enable a company’s shareholders to get cash payments equivalent to the fair value of the shares he/she is holding in the company if the management of the company undergoes a major transaction that the shareholders do not consent or agree with....
Emerging Market Bond Index (EMBI)
What is the Emerging Market Bond Index (EMBI)? The Emerging Market Bond Index (EMBI) is a benchmark index that measures the bond performance of emerging countries and their respective corporate organizations. The EMBI was first published by leading investment bank J.P. Morgan. An emerging market is a market economy that is currently in the growth...
Devaluation
What is Devaluation? Devaluation is a downward adjustment to a country’s value of money relative to a foreign currency or standard. Many countries that operate using a fixed exchange rate tend to use devaluation as a monetary policy tool to control supply and demand. Why Devaluation Happens (Pros) Devaluation happens due to the following: To...
Dirty Price
What is Dirty Price? Dirty price is when a bond price includes interest that has accrued since the latest coupon payment. When investors buy fixed-income securities, such as bonds, they expect to receive coupon payments based on a fixed schedule. However, the price of a bond is dependent on the present value of future coupon...
Demand Shock
What is a Demand Shock? A demand shock is a sudden and temporary increase or decrease in the demand for a good or a bundle of goods. Usually, the phrase “demand shock” is used in the context of aggregate demand, which describes the cumulative demand for an entire economy. A Shift in Demand A temporary...
