Investing Terms

Copper prices have skyrocketed in the past year and recently hit record highs in the latter half of May 2021. Prices have been driven up by high demand of various industries around the world, as the post-Covid recovery takes off. What makes copper valuable? Primarily it is a metal with excellent electricity conducting properties, it's other properties include: • Excellent heat conductivity. • Good corrosion resistance. • Good biofouling resistance.…

In forex trading, there are many types of orders that traders use to enter and exit the market. Among the most popular are stop, limit and market orders. Each offers unique functionality and a collection of strategic uses. No matter what the trader may be tasked with, it's important to understand how these three order types work and how to maximise their efficiency in live market conditions. The Three Primary…

OPEC and non-OPEC producers, decided on Tuesday to increase the collective global output in June

Within the financial markets, there are a wide variety of participants whose primary goal is to make money. While brokerage firms, retail traders and institutional capital outlets all hope to achieve sustainable profitability, one group also seeks influence. Known as activist investors, such entities engage the markets to invoke corporate and sectoral change. What Is An Activist Investor? Activist investors are entities that tactically focus their capital to gain control…

Achieving one's corporate or personal monetary goals takes strategy, discipline and dedication. In order to craft a robust gameplan designed for the long-haul, many people commission the help of an independent third party for guidance. Of these entities, there are two primary types: financial planners and financial advisors. There is no one-size-fits-all money management service. They come in various forms, each with specific qualifications and specialities. However, through the performance…

What Are Fintechs? "Fintech," which is short for "financial technology," refers to companies that have infiltrated the financial services industry. Typically, they offer electronic banking, investments, payment and budgeting services and products to consumers and businesses through the internet and mobile phones, and not through traditional brick-and-mortar branches. Fintechs that offer banking products such as checking and savings accounts and debit and credit cards are also called "challenger" banks, particularly…

What Is A SPAC? A special purpose acquisition company (SPAC) is a shell company that raises money in an initial public offering (IPO) with the purpose of eventually buying an as-yet-to-be-determined private company. Essentially, investors provide money to the sponsors of the SPAC so that they can quickly acquire a company they believe is a good investment. SPACs are often called "blank check" companies because investors really don't know what…

What Is A Zero Coupon Bond? Zero coupon bonds are bonds that pay no interest at regular intervals like traditional bonds do. Rather, zeros are sold at a deep discount to their maturity or face value. As the bonds get closer to their face value over time, they accumulate interest, and the investor receives the full face amount at maturity. For example, a zero coupon bond with a face value…

What Is A Write Down? A write down (also written as "writedown") is an accounting procedure in which a company reduces the value of an asset on its balance sheet to reflect its current, lower market value. A write down is also included on the company's income statement as an expense, which reduces its operating income. Write downs occur in all types of companies, although they may occur more often…

What Is A Loan Loss Provision? A loan loss provision is an amount of money a bank charges to its expenses on its income statement in anticipation that some of the loans it made will default. As a result, loan loss provisions reduce the bank's operating income. In 2020, loan loss provisions have been much in the news as many of the world's banks have announced major loan loss provisions…

What Is A Junk Bond? Junk bonds are debt securities issued by corporations with poor credit ratings, which means they yield more than investment-grade bonds because of their greater risk of default. Junk bonds are also known as high-yield or non-investment-grade bonds. Junk bonds are generally classified as having credit ratings below Baa by Moody's Investors Services and BBB by S&P Global Ratings and Fitch Ratings, the three main credit…