American Depositary Shares (ADS)
What are American Depositary Shares (ADS)? Before we take a look at American Depositary Shares, we first need to understand the concept of American Depositary Receipts (ADR). The first ADR was introduced by J.P. Morgan back in 1927 for the British retailer, Selfridges. An ADR is a financial product that trades in the US financial...
Economic Calendar
What is the Economic Calendar? The economic calendar displays the scheduled release dates of information related to the economy that significantly impacts the financial markets. The financial markets are a news-driven supply and demand vehicle; therefore, the release of significant news or economic events will drive price movements in the market. Many investors and traders...
Serial Correlation
What is Serial Correlation? Serial correlation is a statistical term used to describe the relationship – specifically, the correlation – between the current value of a variable and a lagged value of the same variable from earlier time periods. Serial correlation, also referred to as autocorrelation, is often used by financial analysts to predict future...
Shadow Banking System
What is the Shadow Banking System? The shadow banking system is the broad collection of financial institutions and financial markets that offer the same type of services as commercial banks but that are not within the regulatory environment that traditional banks are subject to. Elements of the shadow banking system include mortgage lending companies, repurchase agreements,...
Share Certificate
What is a Share Certificate? A share certificate is an investment instrument that is very much like a certificate of deposit (CD). There are two primary differences between share certificates and certificates of deposit. The first is that CDs are offered by banks, while share certificates are only offered through credit unions. The...
