Fed Put
What is the Fed Put? The “Fed Put” is a commonly used term in financial markets to describe the belief that many market practitioners hold that the U.S. Federal Reserve (the Fed) will step in with accommodative monetary policy to buoy markets, specifically the U.S. equity market, if prices fall too fast too quickly. Understanding...
Fiduciary
Who is a Fiduciary? A fiduciary is an individual (or business) that pledges to prioritize the beneficiary’s interest by avoiding any conflicts of interest that arise in the duty of good faith, trust, and loyalty towards the beneficiary. Fiduciary Relationships Fiduciary relationships are characterized by the beneficiary’s vulnerability and the fiduciary’s knowledge and control. Fiduciaries...
Repurchase Agreement (Repo)
What is a Repurchase Agreement (Repo)? A repurchase agreement (“repo”), also known as a sale-and-repurchase agreement, is an agreement involving the sale and subsequent repossession of the same security at a future date at a higher price. In simple terms, it is an exchange of a security (which acts as collateral) for cash. Repurchase agreements...
Index-Linked Bond
What is an Index-Linked Bond? An index-linked bond is used to protect the income earned by bond investors against inflation. Index-linked bonds are linked to a country’s inflation index. For example, the U.K. issues index-linked bonds called linkers that are linked to the Retail Price Index (RPI). Similarly, Canada issues Real Return Bonds (RRBs) that...
Candlestick Patterns
What are Candlestick Patterns? Candlestick patterns are a financial technical analysis tool that depicts daily price movement information that is shown graphically on a candlestick chart. A candlestick chart is a type of financial chart that shows the price movement of derivatives, securities, and currencies, presenting them as patterns. Candlestick patterns typically represent one whole...
