Financial Sector
What is the Financial Sector? Key Roles and Institutions The financial sector refers to the businesses and institutions that manage money and provide intermediary services to transfer and allocate financial capital in an economy. Understanding the Financial Sector Every business expansion, home purchase, and investment depends on a financial regulatory framework that moves money efficiently....
Flotation
What is Flotation? Flotation is the process of issuing and selling shares to public investors. In other words, it is when a company goes public and issues new shares to raise capital. It is a term commonly used in the United Kingdom. Floating a company allows it to raise capital for the purpose of acquiring...
Hard Stop
What is a Hard Stop? A hard stop is an instruction from a client to their broker which informs them to sell units of a security when the market price declines to a specific level. Hard stops are used to minimize risk and reduce potential losses in the financial market when price fluctuations and unexpected...
Trading Desk
What is a Trading Desk? A trading desk is a department within a company or investment bank where securities are sold and purchased to provide market liquidity. Some of the securities traded on trading desks include stocks, bonds, commodities, and currencies. Firms with trading desks can add value to their portfolio by supplying expertise in...
Horizontal Integration: Definition, How It Works, and Examples
Horizontal integration is a competitive strategy where companies operating at the same stage of the value chain in the same industry combine to expand their production of goods and services and strengthen their market position. The goal is typically to increase market share, realize economies of scale, and enhance profitability by reducing competition and sharing...
