Dollarization
What is Dollarization? Dollarization is the process by which a country decides to use two currencies – the local currency and generally a stronger, more established currency like the US dollar. A dollarization process can either be partially or completely done. Many times, it is performed because residents no longer believe in the domestic currency...
Extended Trading
What is Extended Trading? Extended trading (or electronic trading hours) is trading conducted by electronic networks either before or after the trading day of a stock exchange, i.e., pre-market trading or after-hours trading. It tends to be limited in volume than regular trading hours when the exchange is open. Pre-market stock trading in the U.S....
Day-Count Convention
What is a Day-Count Convention? A day-count convention is a methodology that determines the number of days that interest accrues between coupon payment days. It is used in a variety of debt securities such as bonds, mortgages, swaps, and forward rate agreements (FRAs). For interest-earning investments, if transactions are not made on the coupon payment...
Developed Economy
What is a Developed Economy? A developed economy is a region, typically a country, with a high level of wealth and resources available to its residents or citizens. What Does “Developed” Mean? The notion that an economy is “developed” is not rigorously defined and is instead based on the consideration of a multitude of factors....
Direct Stock Purchase Plan (DSPP)
What is a Direct Stock Purchase Plan (DSPP)? A Direct Stock Purchase Plan (DSPP) is a way for individuals to buy stocks directly from a company rather than through a brokerage. Typically, investors purchase stocks through brokerages, such as banks or online investment platforms. In this case, the brokerage acts as a middleman between the...
