Capital Flows
What are Capital Flows? Capital flows are transactions involving financial assets between international entities. Financial assets to be included can be bank deposits, loans, equity securities, debt securities, etc. Capital outflow generally results from economic uncertainty in a country, whereas large amounts of capital inflow indicate a growing economy. Two Major Types of Capital Flow...
Exchange Rate
What is an Exchange Rate? An exchange rate is the rate at which one currency can be exchanged for another between nations or economic zones. It is used to determine the value of various currencies in relation to each other and is important in determining trade and capital flow dynamics. Understanding Exchange Rates Exchange rates...
Asset and Liability Management (ALM)
What is Asset and Liability Management (ALM)? Asset and liability management (ALM) is a practice used by financial institutions to mitigate financial risks resulting from a mismatch of assets and liabilities. ALM strategies employ a combination of risk management and financial planning and are often used by organizations to manage long-term risks that can arise...
Ponzi vs. Pyramid Schemes
What are Ponzi vs. Pyramid Schemes? Investors need to be knowledgeable about where they put their money into, particularly about Ponzi vs. pyramid schemes. While the schemes are somewhat similar in how they are operated, there are distinctive differences in their structure. Additionally, while a Ponzi scheme is an outright case of fraud, it...
Wall Street Fraud
What is Wall Street Fraud? Wall Street fraud has been around just about as long as Wall Street itself. Investing centers – such as Wall Street – draw in large sums of money, and where there are large sums of money, there are usually at least a few people scheming to get their hands on...
