Economies

The Toronto Stock Exchange (TSX) is Canada's largest and oldest equities trading and capital raising market. The TSX is part of TMX Group, which is a publicly traded company that operates several Canadian markets and clearinghouses for equities, cash, derivatives, fixed income and energy. The TSX dates back to 1852, when it was an association of 12 Canadian businessmen. The exchange was formally founded on 25 October 1861, when 18…

What Is A Reserve Currency? A reserve currency is a currency that is widely accepted around the world as a method of payment between countries for goods and services. Reserve currencies are also widely held by governments and central banks as foreign exchange reserves and to settle international debt obligations. Past And Current Reserve Currencies The U.S. dollar (USD) has been the primary reserve currency since the end of World…

The U.S. stock market crash of 1929 was the beginning of the longest and deepest decline in stocks in history. It precipitated the failure of about half of the banks in the U.S. and was one of the principal causes of the Great Depression, which lasted about 10 years and engulfed most of the world. The market crash was preceded by a long period of economic prosperity in the U.S.…

What Is Keynesian Economics? Keynesian economics is an economic theory that argues that governments should spend heavily on infrastructure projects and unemployment benefits during economic downturns in order to stimulate consumer and business spending, growth and job creation. The theory was developed by British economist John Maynard Keynes in his 1936 book, The General Theory of Employment, Interest, and Money. It was published during the Great Depression, when nothing seemed…

What Are Government Bonds? Bonds are debt instruments issued by governments to the public. Essentially, when a government sells bonds, it's borrowing money to finance its activities, including infrastructure projects, health and welfare benefits, defense expenditures and the like. It also sells bonds to pay off its previously issued debt—in other words, selling new debt to retire old debt. The United States government bond market is the largest debt market…

Since Donald Trump's victory in the U.S. General Election of 2016, the sitting President of the United States (POTUS) has been a polarising and controversial figure. From alleged Russian collusion to unprecedented Twitter practices, constant criticism has been a central theme among political adversaries. While critique and open discourse are staples of U.S. politics, an actual removal from office or impeachment of a POTUS is rare. On 24 September 2019,…

What Are Tariffs? Tariffs are a tax or duty imposed on imported foreign goods. They're paid by the company importing the product, although the foreign company exporting the product may thereby find its products too expensive to sell in foreign markets depending on how high the tariffs are. The importing company paying the tariff may absorb the cost or pass it along to consumers, or a combination of the two.…

What Is A Safe Haven Asset? Safe haven assets are investments that investors turn to during times of market volatility and instability, i.e., to "weather the storm." These investments are perceived to be safe from losses during market turmoil or are negatively correlated to the market at large, meaning they may go up in price when the majority of other assets, mainly stocks, are losing value. Most Common Safe Haven…

What Is Dow Theory? The Dow Theory is a technical analysis concept that adherents believe can signal whether the stock market is headed upward ("bullish") or downward ("bearish"). The idea was developed in the late 19th century by Charles Dow. He was the founder of the Wall Street Journal and co-founder of its then parent company, Dow Jones & Company, as well as the creator of the Dow Jones Industrial…

What Is The Lehman Brothers Collapse? The collapse of Lehman Brothers in September 2008 was the largest instance of corporate bankruptcy in American history. The firm's failure is generally regarded as the seminal event of the global financial crisis, which triggered the Great Recession that followed. The effects are still being felt today in the form of weak economic growth and unprecedented central bank intervention in the global economy and…

What Is Modern Portfolio Theory? Modern portfolio theory is an investing model designed to help investors structure a portfolio that seeks to maximise returns with a minimal level of risk, largely through diversification. Who Created Modern Portfolio Theory? The theory was devised by Harry Markowitz in an article entitled "Portfolio Selection" published in the Journal of Finance in 1952. In the article, he quantified a method for constructing such a…