Sovereign Wealth Fund (SWF)
What is a Sovereign Wealth Fund (SWF)? A sovereign wealth fund (SWF), also known as a social wealth fund, is the surplus money that a country accrues over time. The government-backed pool of funds is mostly funded from a country’s foreign exchange reserves. Other sources of funds for an SWF account include: Bank reserves Surplus...
Homogeneous Expectations
What are Homogeneous Expectations? Homogeneous expectations is a subjective belief, entrenched in the Modern Portfolio Theory (MPT) proposed by American economist Harry Markowitz, and postulates that all investors have the same expectations and arrive at similar conclusions. The assumption states that investors are rational in their decisions, resulting in homogeneous investment strategies. It applies to...
Horizontal Channel
What is Horizontal Channel? A horizontal channel is a trend line that connects the variable pivot highs and lows to highlight the price movements during a trading period. Otherwise known as a sideway trend or price range, horizontal lines are used by traders for identify breakouts to determine where price action is decisive. Channels are...
Exempt Transaction
What is an Exempt Transaction? Exempt transactions are securities transactions that are exempt from registration requirements, either in part or in full, outlined in the 1933 Securities Act. The 1933 Securities Act was enacted after the Great Depression in the United States to bring regulation and transparency to the U.S. markets to help avoid extreme...
Exempt-Interest Dividend
What is an Exempt-Interest Dividend? Exempt-interest dividend refers to any dividend or part of it that a regulated investment company pays that is not subject to tax. It is designated as such in a written notice that is mailed to the company’s shareholders within 45 days after the end of the taxable year. In the...
