An abandonment option provides flexibility to a company by allowing it to discontinue or exit a project, investment, or asset if it becomes unprofitable or no longer aligns with strategic goals. This option acts as a safeguard, enabling the company...
International trade can both positively and negatively impact a recession, depending on the nature of the trade relationships and global economic conditions. On one hand, exports can provide a boost to the economy, as they can help increase demand...
An option premium is a difference between the strike price and the current market price of the option contract. Therefore, it is the profit earned by the seller (writer) of an option contract. For in-the-money options, there are two components:...
A price-weighted index and a market-cap-weighted index differ primarily in how they calculate and weigh their components. In a price-weighted index, such as the Dow Jones Industrial Average (DJIA), the weight of each stock is determined by its price...
Green investment is a type of investment that is made by companies and enterprises that produce environmentally friendly products. These companies are rewarded for implementing new technologies and for using and producing environmentally friendly...
A valuation clause is a provision commonly included in contracts or agreements that specifies the method or criteria for determining the value of a particular asset, property, or business entity. It is used to establish a fair and objective valuation...
Top gainers in the stock market are identified by calculating the percentage increase in the price of a stock over a specific period, typically within a single trading day.
A securities market is a healthy market where government, corporate, and semi-government securities are bought and sold.
Stocks and shares are terms that are often used interchangeably, but they have distinct meanings in the world of finance.
In recent years, there have been several successful IPOs that have captured the attention of investors and the broader public. One notable example is the IPO of Beyond Meat, a plant-based meat company that went public in 2019 and saw its share price...