Elective-Deferral Contribution
What is an Elective-Deferral Contribution? An elective-deferral contribution is an employee-authorized contribution made from an employee’s salary account to an employer-sponsored retirement plan. The employee needs to provide consent to the employer to deduct contributions. The funds contributed to retirement plans, including 401(k) and 403(b). Elective deferral contributions are a popular way to save for...
Japan ETF
What is a Japan ETF? A Japan ETF is an exchange-traded fund that baskets a number of equities that are exposed to Japan’s economic growth and profits. Equities include major corporations such as Honda Motor Co. and Sony Corp. Therefore, Japan ETFs offer investors the opportunity to be exposed to Japan-based businesses, along with many...
Double Exponential Moving Average (DEMA)
What is the Double Exponential Moving Average (DEMA)? Double exponential moving averages (DEMA) are an improvement over Exponential Moving Average (EMA) because they allocate more weight to recent data points. The reduced lag results in a more responsive moving average, which helps short-term traders spot trend reversals quickly. Let us look at Apple Inc.’s prices...
Accumulation/Distribution Indicator (A/D)
What is the Accumulation/Distribution Indicator (A/D)? The accumulation distribution indicator (AD) or accumulation distribution line is a volume-based indicator used to determine the trend of a stock, using the relation between the stock’s price and volume flow. The term “accumulation” denotes the level of buying (demand), and “distribution” denotes the level of selling (supply) of...
Equity-Linked Securities (ELKS)
What are Equity-Linked Securities (ELKS)? Equity-linked securities (ELKS) are a type of debt instrument with unfixed payments that are linked to an underlying equity. They deliver the return of common shares in certain circumstances. ELKS are usually created as bonds by issuers as a capital financing method in private markets, which means investors cannot trade...
