A country’s financial account is defined as the balance of payments tracking increases and decreases in the international ownership of assets held by individuals, businesses, the government, or central banks. The assets under ownership include securities such as stocks and bonds, commodities such as silver and gold, currencies, and direct investments. Financial accounts comprise the…
What Is Credit Exposure? Credit exposure is a measurement of the maximum potential loss to a lender if the borrower defaults on payment. It is a calculated risk to doing business as a bank. For example, if a bank has made a number of short-term and long-term loans totaling $100 million to a company, its…
What Is Capacity? Capacity is the maximum level of output that a company can sustain to make a product or provide a service. Planning for capacity requires management to accept limitations on the production process. Depending on the business type, capacity can refer to a production process, human resources allocation, technical thresholds, or several other…
What Is a Composite? In the financial world, a composite is a grouping of equitiesindexes, or other investment securities in a standardized way. When applied to stock prices, a composite index can provide a useful statistical measure for the performance of the overall market, a specific sector, or an industry group. Composites are also created…
What Is Paper Money? Paper money is a country’s official, paper currency that is circulated for the transactions involved in acquiring goods and services. The printing of paper money is typically regulated by a country’s central bank or treasury in order to keep the flow of funds in line with monetary policy. Paper money tends…
Ralph Nelson Elliott developed the Elliott Wave Theory in the 1930s. Elliott believed that stock marketsgenerally thought to behave in a somewhat random and chaotic manner, in fact, traded in repetitive patterns. In this article, we’ll take a look at the history behind Elliott Wave Theory and how it is applied to trading. Key Takeaways…
Cronos Group Inc. CRON) shares rose more than 2% during Friday’s session as cannabis stocks recouped some of the losses they posted over the past month. While some dispensaries have been forced to close their physical locations, others have remained open, and there’s evidence that cannabis sales and deliveries are on the rise in many…
Shares of the digital transaction giants have plummeted in reaction to fallout from the coronavirus pandemic, which will sharply lower volumes in the first and second quarters. Two elite members of this group have held long-term uptrends and reached deep support levelswhile the third has already entered bear market territory. The prognosis looks poor for…
The keepers of the Dow Jones Industrial Average (DJIA) may have to make big changes in 2020, with the weakest components acting more like penny stocks than multinational icons. Of the 30 members, 29 are now trading below their 200-day exponential moving averages (EMAs), potentially entering bear markets that could persist for several years. Only…