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how do you trade the ascending triangle chart pattern
traders generally enter a position on a security when its price breaks above or below the boundaries of an ascending triangle if the price jumps above the horizontal resistance level it may be a good time to buy while a move below the lower trendline suggests that selling or shorting the asset could be a profitable mov...
what is the asia pacific economic cooperation apec
the asia pacific economic cooperation apec is an economic group of 21 members formed in 1989 with the primary goal of promoting free trade and sustainable development in the pacific rim economies 1
what is the asian development bank
the asian development bank s primary mission is to foster economic growth and cooperation among countries in the asia pacific region 1 founded in 1966 and based in manila philippines the adb assists members and partners by providing loans technical assistance grants and equity investments to promote social and economic...
how the asian development bank works
the asian development bank provides assistance to its developing member countries the private sector and public private partnerships through grants loans technical assistance and equity investments to promote development the adb regularly facilitates policy dialogues and provides advisory services they also use co fina...
when adb was founded in 1966 it consisted of 31 members since then membership has grown to 68 members which is made up of 48 regional and 19 non regional members membership as of 2022 includes 6
the two largest shareholders of the asian development bank are the united states and japan both countries have a majority ownership of the bank with 15 6 each 7who controls the asian development bank the adb is run by a board of governors which represent the member countries of the adb as of 2022 adb s five largest sha...
where is the asian development bank headquartered
the asian development bank has its headquarters in manila philippines
is india a member of the asian development bank
yes india is a regional member country of the adb
what was the asian financial crisis
the asian financial crisis also called the asian contagion was a sequence of currency devaluations and other events that began in july 1997 and spread across asia the crisis started in thailand when the government ended the local currency s de facto peg to the u s dollar after depleting much of the country s foreign ex...
when governments spend implement policies that keep taxes low subsidize the price of staple goods or use other methods that effectively put more money in people s pockets consumers have more money to spend as most economies rely at least partly on imports for many goods and services this increased spending creates dema...
demand for foreign currency and selling of local currency to buy it increases exponentially when those policies also promote heavy investment in infrastructure new businesses and other economic projects as more local currency is offered for sale on foreign exchange markets its value goes down unless there is a correspo...
why do governments keep exchange rates high
governments especially in developing economies seek to manage exchange rates to balance their ability to pay debts denominated in foreign currencies because investors generally prefer instruments denominated in more stable currencies governments in developing economies often raise funds by issuing bonds denominated in ...
why do governments keep exchange rates low
conversely governments may seek to keep their exchange rates low to increase the competitiveness of exports in the 1980s following years of complaints from u s companies about competition from cheap japanese imports the u s government convinced japan to allow its currency to appreciate as part of the plaza accord 8 the...
what is the asian infrastructure investment bank aiib
the asian infrastructure investment bank aiib is a multilateral development bank that provides financing for infrastructure projects in asia like other development banks its mission is to improve social and economic outcomes in its region asia and beyond it has 106 member countries and 100 billion of capitalization as ...
what is ask
the ask is the price a seller is willing to accept for a security which is often referred to as the offer price along with the price the ask quote might also stipulate the amount of the security available to be sold at the stated price the bid is the price a buyer is willing to pay for a security and the ask will alway...
what is assemble to order ato
assemble to order ato is a business production strategy where products that are ordered by customers are produced quickly and are customizable to a certain extent it typically requires that the basic parts of the product are already manufactured but not yet assembled once an order is received the parts are assembled qu...
what is assessed value
assessed value is the dollar value assigned to a home or other piece of real estate for property tax purposes it takes into account the value of comparable properties in the area among other factors in many cases the assessed value is calculated as a percentage of the fair market value of the property understanding ass...
how assessed value is calculated
in most states and municipalities assessed value is calculated as a percentage of the property s fair market value the percentage rate used can vary considerably from one place to another for example at 10 mississippi uses one of the lowest percentage rates in the nation for owner occupied single family homes to establ...
what s the difference between the assessed value and the appraised value
to begin with they re both values associated with your home however the assessed value is determined by your local tax authority and used to determine your property tax the appraised value is determined by an industry professional and normally used in the mortgage application process to verify that the home is worth th...
why is assessed value important
it s important to know because it plays a role in how your property tax bill is determined plus if you re looking for a home knowing the assessed value may give you a bargaining chip if the sale price of a home is set much higher
how often does assessed value change
that depends on the state or jurisdiction where the property is located some areas update assessments annually others may do so every few years check with the tax department of your town for details the bottom lineassessed value refers to the value assigned to a property such as a home by the local government it is use...
what is an asset
an asset is a resource with economic value that an individual a company or a country owns or controls with the expectation that it will provide a future benefit investopedia nez riazunderstanding assetsindividuals usually think of assets as items of value that they could convert into cash at some future point and that ...
what s considered useful life varies according to the type of asset for example under the general depreciation system gds the internal revenue service irs assigns office furniture and fixtures a useful life of seven years while cars and trucks get a useful life of five years 1
financial assets can include stocks corporate and government bonds and other types of securities unlike fixed assets they tend to be liquid and they are valued according to their current price on the relevant market intangible assets are economic resources that have no physical presence they include patents trademarks ...
what is considered an asset
an asset can be anything that provides a current or potential future economic benefit to whoever possesses or controls that asset simply put an asset is something of value that you own or that is owed to you if you lend money to someone that loan is also an asset because you are due that amount for the person who owes ...
what are examples of assets
personal assets can include a home land financial securities jewelry artwork gold and silver or your checking account business assets can include such things as motor vehicles buildings machinery equipment cash and accounts receivable as well as intangibles like patents and copyrights
what are non physical assets
non physical or intangible assets provide an economic benefit even though you cannot physically touch them they are an important class of assets that include things like intellectual property e g patents or trademarks contractual obligations royalties and goodwill brand equity and reputation are also examples of non ph...
is labor an asset
no labor is the work carried out by human beings for which they are paid in wages or a salary labor is distinct from assets which are considered to be capital
how are current assets different from fixed noncurrent assets
in accounting assets are categorized by their time horizon of use current assets are expected to be sold or used within one year fixed assets also known as noncurrent assets are expected to be in use for longer than one year fixed assets are not easily liquidated as a result unlike current assets fixed assets can under...
why is asset allocation important
there s no formula for the right asset allocation for everyone but the consensus among most financial professionals is that asset allocation is one of the most important decisions investors make 1 selecting individual securities within an asset class is done only after you decide how to divide your investments among st...
how do economic changes affect asset allocation strategies
economic cycles of growth and contraction greatly affect how you should allocate your assets during bull markets investors ordinarily prefer growth oriented assets like stocks to profit from better market conditions alternatively during downturns or recessions investors tend to shift toward more conservative investment...
what is an asset allocation fund
an asset allocation fund provides investors with a diversified portfolio of investments across various asset classes the asset allocation of the fund can be fixed or variable among a mix of asset classes it may be held to fixed percentages of asset classes or allowed to lean further on some depending on market conditio...
what is the best asset allocation strategy for my age
generally the younger and further you are from needing to access the capital invested the more you should invest in stocks one common guideline that s ordinarily quoted is that you should hold a percentage of stocks that is equal to 100 minus your age so if you are 30 70 of your portfolio should supposedly consist of s...
how does behavioral finance view asset allocation
behavioral finance explores how common cognitive errors might influence our financial choices for our asset allocation we might be swayed too much by recent market trends overconfidence sunk cost reasoning or loss aversion which can lead to less beneficial allocation choices awareness of these cognitive biases can help...
what is an asset backed commercial paper abcp
an asset backed commercial paper abcp is a short term investment vehicle with a maturity date that is typically between 90 and 270 days a bank or other financial institution typically issues the security itself the notes are backed by the company s physical assets such as trade receivables companies will use an asset b...
what is an asset backed security abs
asset backed securities abs is a type of financial investment that is collateralized by an underlying pool of assets usually ones that generate a cash flow from debt such as loans leases credit card balances or receivables it takes the form of a bond or note paying income at a fixed rate for a set amount of time until ...
how an asset backed security works
assume that company x is in the business of making automobile loans if a person wants to borrow money to buy a car company x gives that person the cash and the person is obligated to repay the loan with a certain amount of interest perhaps company x makes so many loans that it starts to run out of cash company x can th...
what is an example of an asset backed security
a collateralized debt obligation is an example of an asset based security abs it is like a loan or bond one backed by a portfolio of debt instruments bank loans mortgages credit card receivables aircraft leases smaller bonds and sometimes even other abss or cdos this portfolio acts as collateral for the interest genera...
what is asset backing
asset backing refers to the total value of a company s shares in relation to its assets specifically it refers to the total value of all the assets that a company has divided by the number of outstanding shares that the company has issued in terms of investments asset backing refers to a security with value deriving fr...
what does abs stand for in accounting
in the business world abs stands for accounting and billing system it s the software used to process invoice and potentially apply remittances to against those payments
what is the difference between mbs and abs
an asset based security abs is similar to a mortgage backed security mbs both are securities that like bonds pay a fixed rate of interest derived from an underlying pool of income generating assets usually debts or loans the main difference is that an mbs as its name implies consists of a package of mortgages real esta...
how does asset securitization work
asset securitization begins when a lender or any company with loans or a firm with income producing assets earmarks a bunch of these assets and then arranges to sell the lot to an investment bank or other financial institution this institution often pools these assets with comparable ones from other sellers then establ...
what is an asset based approach
an asset based approach is a type of business valuation that focuses on a company s net asset value the net asset value is identified by subtracting total liabilities from total assets there is some room for interpretation in terms of deciding which of the company s assets and liabilities to include in the valuation an...
what is asset based lending
asset based lending is the business of loaning money in an agreement that is secured by collateral an asset based loan or line of credit may be secured by inventory accounts receivable equipment or other property owned by the borrower the asset based lending industry serves business not consumers it is also known as as...
how asset based lending works
many businesses need to take out loans or obtain lines of credit to meet routine cash flow demands for example a business might obtain a line of credit to make sure it can cover its payroll expenses even if there s a brief delay in payments it expects to receive if the company seeking the loan cannot show enough cash f...
what is an asset class
an asset class is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations asset classes are thus made up of instruments that often behave similarly to one another in the marketplace examples of common asset classes include equities fixed income commodities and rea...
when people talk about equities they are usually speaking about owning shares in a company for companies to expand and meet their objectives they often resort to selling slices of ownership in exchange for cash to the general public buying these shares represents a great way to profit from the success of a company
there are two ways to make money from investing in companies the market can be volatile though share prices are known to fluctuate and some companies may even go bust commodities are basic goods that can be transformed into other goods and services examples include metals energy resources and agricultural goods commodi...
what are the most popular asset classes
historically the three main asset classes have been equities stocks fixed income bonds and cash equivalent or money market instruments currently most investment professionals include real estate commodities futures other financial derivatives and even cryptocurrencies in the asset class mix
which asset class has the best historical returns
the stock market has proven to produce the highest returns over extended periods of time since the late 1920s the compound annual growth rate cagr for the s p 500 is about 6 7 assuming that all dividends were reinvested and adjusted for inflation in other words 100 invested in the s p 500 on jan 1 1928 would have been ...
why are asset classes useful
financial advisors focus on asset class as a way to help investors diversify their portfolios to maximize returns investing in several different asset classes ensures a certain amount of diversity in investment selections each asset class is expected to reflect different risk and return investment characteristics and p...
what is the asset coverage ratio
the asset coverage ratio is a financial metric that measures how well a company can repay its debts by selling or liquidating its assets the asset coverage ratio is important because it helps lenders investors and analysts measure the financial solvency of a company banks and creditors often look for a minimum asset co...
how the asset coverage ratio is used
companies that issue shares of stock or equity to raise funds don t have a financial obligation to pay those funds back to investors however companies that issue debt via a bond offering or borrow capital from banks or other financial companies have an obligation to make timely payments and ultimately pay back the prin...
what is asset financing
asset financing refers to the use of a company s balance sheet assets including short term investments inventory and accounts receivable to borrow money or get a loan the company borrowing the funds must provide the lender with a security interest in the assets understanding asset financingasset financing differs consi...
what is an asset liability committee
an asset liability committee alco also known as surplus management is a supervisory group that coordinates the management of assets and liabilities with a goal of earning adequate returns by managing a company s assets and liabilities executives are able to influence net earnings which may translate into increased stoc...
what is asset liability management
asset liability management is the process of managing the use of assets and cash flows to reduce the firm s risk of loss from not paying a liability on time well managed assets and liabilities increase business profits the asset liability management process is typically applied to bank loan portfolios and pension plans...
what is asset management
asset management is the practice of buying selling and managing investments commensurate with specific risk tolerances to increase wealth over time asset management professionals perform this service for clients they may also be called portfolio managers or financial advisors many work independently while others work f...
how asset management companies work
asset management companies compete to serve the investment needs of individuals and institutions account holders at financial institutions such as banks often receive check writing privileges credit cards debit cards margin loans and brokerage services
when individuals deposit money into their accounts it is typically placed into a money market fund that offers a greater return than a regular savings account the deposits of investors with accounts at banks insured by the federal deposit insurance company fdic are protected up to at least 250 000 per depositor however...
these types of accounts at banks have only been possible since the passage of the gramm leach bliley act in 1999 which replaced the glass steagall act the glass steagall act of 1933 passed during the great depression forced a separation between banking and investing services now they have only to maintain a chinese wal...
how does an asset management company differ from a brokerage
asset management companies are fiduciary firms and are generally used by people with significant assets they usually have discretionary trading authority over accounts and are legally bound to act in good faith on the client s behalf brokerages execute and facilitate trades but do not necessarily manage clients portfol...
what does an asset manager do
an asset manager is responsible for creating a client s portfolio overseeing it from day to day making changes to it as needed and communicating regularly with the client about those changes and how well their investment goals are being achieved
what are the top asset management institutions
as of february 2024 the five largest asset management institutions based on global assets under management aum were blackrock 9 46 trillion vanguard group 7 25 trillion fidelity management and research 3 88 trillion the capital group 2 5 trillion and amundi 2 1 trillion 5
what is digital asset management
digital asset management or dam refers to the storage of media assets in a central repository where they can be accessed as necessary by all members of an organization dam is usually used for large audio or video files that need to be worked on by many teams of employees at once the bottom lineasset management firms pr...
what is an asset management company amc
an asset management company amc is a firm that invests pooled funds from clients putting the capital to work through different investments including stocks bonds real estate master limited partnerships and more along with high net worth individual hnwi portfolios amcs manage hedge funds and pension plans and to better ...
what is asset protection
asset protection is the adoption of strategies to guard one s wealth asset protection is a component of financial planning intended to protect one s assets from creditor claims individuals and business entities use asset protection techniques to limit creditors access to certain valuable assets while operating within t...
in accounting an asset retirement obligation aro describes a legal obligation associated with the retirement of a tangible long lived asset where a company will be responsible for removing equipment or cleaning up hazardous materials at some future date aros should be included in a company s financial statement to pres...
understanding asset retirement obligationsasset retirement obligation accounting often applies to companies that create physical infrastructure which must be dismantled before a land lease expires such as underground fuel storage tanks at gas stations aros also apply to the removal of hazardous elements and or waste ma...
what is an asset swap
an asset swap is similar in structure to a plain vanilla swap with the key difference being the underlying of the swap contract rather than regular fixed and floating loan interest rates being swapped fixed and floating assets are being exchanged all swaps are derivative contracts through which two parties exchange fin...
how is the spread of an asset swap calculated
there are two components used in calculating the spread for an asset swap the first one is the value of coupons of underlying assets minus par swap rates the second component is a comparison between bond prices and par values to determine the price that the investor has to pay over the lifetime of the swap the differen...
what is an asset swapped convertible option transaction ascot
an asset swapped convertible option transaction ascot is a structured investment strategy in which an option on a convertible bond is used to separate a convertible bond into its two components a fixed income piece and an equity piece more specifically the components being separated are the corporate bond with its regu...
how an ascot works
convertible bond traders are exposed to two types of risk one is the credit risk inherent in the bond portion of the investment the other is the market volatility on the share price of the underlying as it impacts whether or not the conversion option has any value for our purposes let s assume the convertible bond trad...
what is the asset turnover ratio
the asset turnover ratio measures the value of a company s sales or revenues relative to the value of its assets the asset turnover ratio indicates the efficiency with which a company is using its assets to generate revenue the higher the asset turnover ratio the more efficient a company is conversely if a company has ...
what the ratio means
typically the asset turnover ratio is calculated on an annual basis the higher the asset turnover ratio the better the company is performing since higher ratios imply that the company is generating more revenue per dollar of assets the asset turnover ratio tends to be higher for companies in certain sectors than others...
what is asset turnover measuring
the asset turnover ratio measures the efficiency of a company s assets in generating revenue or sales it compares the dollar amount of sales to its total assets as an annualized percentage thus to calculate the asset turnover ratio divide net sales or revenue by the average total assets one variation on this metric con...
what are some limitations of the asset turnover ratio
while investors may use the asset turnover ratio to compare similar stocks the metric does not provide all of the details that would be helpful for stock analysis a company s asset turnover ratio in any single year may differ substantially from previous or subsequent years investors should review the trend in the asset...
what is asset valuation
asset valuation is the process of determining the fair market or present value of assets using book values absolute valuation models like discounted cash flow analysis option pricing models or comparables such assets include investments in marketable securities such as stocks bonds and options tangible assets like buil...
what are assets under management aum
assets under management aum is the market value of the investments managed by a person or entity on behalf of clients aum is used in conjunction with management performance and management experience when evaluating a company when calculating aum some financial institutions include bank deposits mutual funds and cash wh...
how is aum used as a tool by investment companies
investment companies use assets under management as a marketing tool to attract new investors aum helps investors determine the size of a company s operations relative to its competitors
what is the benefit of a fund with a large aum
funds with large aums have sufficient holdings to meet any redemption pressure if a few large investors leave the fund it would not likely impact it the bottom lineassets under management aum is the market value of the investments managed by a person or entity on behalf of clients aum can reveal the management performa...
what is an assignment
assignment most often refers to one of two definitions in the financial world uses for assignmentsassignment refers to the transfer of some or all property rights and obligations associated with an asset property contract or other asset of value to another entity through a written agreement assignment rights happen eve...
what is an assortment strategy
an assortment strategy in retailing involves the number and type of products that stores display for purchase by consumers also called a product assortment strategy it is a strategic tool that retailers use to manage and increase sales the strategy is made up of two major components
how assortment strategies work
essentially a product assortment strategy is a retail industry sales tool with the concepts of depth and breadth at its core however not all retailers will be able to use both components of this strategy at the same time an assortment strategy can have many layers of sub and related strategies as each store will need t...
what is an assumable mortgage
an assumable mortgage is a type of home financing arrangement where an outstanding mortgage and its terms are transferred from the current owner to the buyer by assuming the previous owner s remaining debt the buyer can avoid obtaining their own mortgage different types of loans can qualify as assumable mortgages thoug...
what types of loans are assumable
some of the most popular types of mortgages are assumable if you are a buyer who wishes to assume a mortgage from a seller you must meet specific requirements and receive approval from the agency sponsoring the mortgage fha loans are assumable when both transacting parties meet the requirements for the assumption for i...
what does assumable mean
assumable refers to when one party takes over the obligation of another in terms of an assumable mortgage the buyer assumes the existing mortgage of the seller when the mortgage is assumed the seller is often no longer responsible for the debt
what does not assumable mean
not assumable means that the buyer cannot assume the existing mortgage from the seller conventional mortgages are non assumable some mortgages have non assumable clauses preventing buyers from assuming mortgages from the seller
how does an assumable loan work
to assume a loan you must qualify with the lender if the price of the house exceeds the remaining mortgage you must remit a down payment worth the difference between the sale price and the mortgage if the difference is substantial the buyer may need to secure a second mortgage
how do i know if my mortgage is assumable
certain types of home loans are assumable for example usda va and fha loans are assumable each agency has specific requirements that both parties must fulfill for the loan to be assumed by the buyer the usda requires that the house is in a usda approved area the seller must not be delinquent on payments and the buyer m...
when current interest rates are higher than an existing mortgage s rates assuming a loan may be the favorable option also there are not as many costs due at closing on the other hand if the seller has a considerable amount of equity in the home the buyer will either have to pay a large down payment or secure a second m...
the bottom linean assumable mortgage may be attractive to buyers when current mortgage rates are high and because closing costs are considerably lower than those associated with traditional mortgages however if the owner has a lot of equity in the home the buyer may need to pay a substantial down payment or secure a ne...
what is assurance
assurance refers to financial coverage that provides remuneration for an event that is certain to happen assurance is similar to insurance with the terms often used interchangeably however insurance refers to coverage over a limited time whereas assurance applies to persistent coverage for extended periods or until dea...
how assurance works
one of the best examples of assurance is whole life insurance as opposed to term life insurance in the u k life assurance is another name for life insurance the adverse event that both whole life and term life insurance deal with is the death of the person the policy covers since the death of the covered person is cert...
what are assurance services
assurance services are a type of independent professional service usually provided by certified or chartered accountants such as certified public accountants cpas assurance services can include a review of any financial document or transaction such as a loan contract or financial website this review certifies the corre...
what is asymmetric information
asymmetric information also known as information failure occurs when one party to an economic transaction possesses greater material knowledge than the other party this typically manifests when the seller of a good or service possesses greater knowledge than the buyer however the reverse dynamic is also possible almost...
what is at par
the term at par means at face value a bond preferred stock or other debt instrument may trade at par below par or above par par value is static unlike market value which fluctuates with credit ratings time to maturity and interest rate fluctuations the par value is assigned at the time the security is issued when secur...
what is a bond s par value
a bond s par value is its face value the price that it was issued at most bonds are issued with a par value of 1 000 or 100 over time the bond s price will change due to changes in interest rates credit ratings and time to maturity when this happens a bond s price will either be above its par value above par or below i...
are bonds always issued at par value
no bonds are not always issued at par value they can be issued at a premium price is higher than the par value or at a discount price is below the par value the reason for a bond being issued at a price that is different than its par value has to do with current market interest rates for example if a bond s yield is hi...
what is a bond s coupon rate
the coupon rate of a bond is the stated amount of interest that the bond will pay an investor at the time of its issue a bond s coupon rate is different from a bond s yield a bond s yield is its effective rate of return when the bond s price changes a bond s yield is calculated as coupon rate current bond price
what is an atomic swap
an atomic swap is an exchange of cryptocurrencies from separate blockchains the swap is conducted between two entities without a third party s involvement the idea is to remove centralized intermediaries like regulated exchanges and give token owners total control the term atomic derives from the term atomic state in w...
is an atomic swap expensive
the mainstream s ability to do atomic swaps is new but they don t yet generate fees unless there are blockchain fees involved
how do you do an atomic swap
it is done using cryptocurrency wallets and hash timelock contracts htlc which enforce the exchange when both parties agree to it in reality there are only a few atomic swap wallet providers and decentralized exchanges that can be used in a swap
what are cross chain atomic swaps
cross chain atomic swaps are cryptocurrency exchanges or trades between cryptocurrencies that use separate blockchains investing in cryptocurrencies and other initial coin offerings icos is highly risky and speculative and this article is not a recommendation by investopedia or the writer to invest in cryptocurrencies ...
what is at the money atm
at the money atm is a situation where an option s strike price is identical to the current market price of the underlying security an atm option has a delta of 0 50 positive if it is a call negative for a put both call and put options can be simultaneously atm for example if xyz stock is trading at 75 then the xyz 75 c...
what is an attorney in fact
an attorney in fact also called an agent is a person who is authorized to act on behalf of another person known as the principal typically to perform business or other official transactions the principal usually designates someone as their attorney in fact by assigning them in a power of attorney although a court may c...
when a power of attorney is deemed durable it continues even after the principal becomes incapacitated an event that would normally terminate it
durable power of attorneya power of attorney generally terminates when a person dies becomes incapacitated or consciously chooses to revoke it via a written witnessed signed and notarized notice it can also end if it has a set date or its purpose has been accomplished however if it has been designated as a durable powe...
why do you need an attorney in fact
there can be a variety of reasons to designate an attorney in fact it can simply be for convenience if for example you are buying or selling an asset and it is a burden for you to appear in person to close the deal it can also be for cases in which you cannot act for yourself whether due to physical or mental incapacit...