Several factors can influence the fair value of financial instruments. One of the most significant factors is the supply and demand for the instrument, which can cause its price to fluctuate. Other factors include market volatility, interest rates,...
A crypto wallet is simply software or hardware that stores a user's public and private keys. The public blockchain does not directly store a user's cryptocurrency, which is recorded on the public ledger directly. Instead, it provides an interface for...
Due diligence is a critical component in private equity investments, as it allows investors to thoroughly evaluate a target company before committing capital. The process involves a comprehensive review of the company’s financials, operations,...
The prime rate is the interest rate that banks charge their best credit to corporate customers. The federal funds rate is the starting point for determining the prime rate, and the prime rate is the starting point for determining other interest...
High-quality stocks are stocks that are believed to have a lower risk of financial distress or bankruptcy and are associated with companies that are considered to have strong financial fundamentals. These stocks are often considered to be stable,...
Stocks are considered a smart investment for several reasons. One of the primary reasons is their potential for higher long-term returns compared to other asset classes like bonds or savings accounts. Over time, the stock market tends to grow, with...
Fiscal policy refers to the decisions made by the United States government regarding spending and tax collection, as well as how these policy changes affect the economy. When the government makes financial decisions, it must consider the impact on...
It is important to check bullish or bearish flags in charts as they show points where the price decided to move differently. Breaks in price can be noticed thanks to flags and as a result one can factor this in his decision making process.
The Federal Funds Rate is the interest rate at which banks lend to each other overnight to meet their reserve requirements. Set by the Federal Reserve, it is one of the most critical tools in U.S. monetary policy, influencing liquidity in the banking...
During a recession, the stock market tends to experience a downturn, as investors become more risk-averse and sell off their stocks in anticipation of declining company profits. This can lead to a decrease in stock prices and overall market value....