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what is the best asset to trade using mean reversion
the selection of an asset to trade using mean reversion is dependent on various factors such as market conditions the entity s trading and investing expertise and risk tolerance some commonly traded assets well suited for mean reversion strategies include stocks forex commodities exchange traded funds etfs and fixed in...
what is the difference between trend following and mean reversion
trend following and mean reversion operate on different premises the objective of trend following is to capitalize on assets moving strongly in a particular direction the objective of mean reversion is to capitalize on price deviations from an established mean or average the bottom linemean reversion is a financial the...
what is a mean variance analysis
mean variance analysis is the process of weighing risk expressed as variance against expected return investors use mean variance analysis to make investment decisions investors weigh how much risk they are willing to take on in exchange for different levels of reward mean variance analysis allows investors to find the ...
what is a medallion signature guarantee
a medallion signature guarantee is one of several special certification stamps that guarantees a signature that authorizes a transfer of securities is authentic parties will generally require a medallion signature guarantee when an owner wants to sell or transfer securities such as stocks or bonds held in physical cert...
how medallion signature guarantees work
to provide a medallion signature guarantee an institution must be a member of one of three medallion signature guarantee programs the securities transfer agents medallion program stamp the stock exchanges medallion program semp and the new york stock exchange medallion signature program msp 1normally you can obtain a m...
which banks offer medallion signature guarantee
many u s banks offer medallion signature guarantee but not every branch of a participating bank can provide the service most large financial institutions such as bank of america chase and capital one provide the medallion signature guarantee 4 if one of their branches does not have an on site reviewer the documents mus...
how long is a medallion stamp good for
the medallion stamp is valid for the date it is signed 11
how much does it cost to get a medallion signature
medallion signature guarantees are obtained from institutions that have the authority to issue them for some institutions particularly large banks if the customer has an established relationship they may not be subject to fees or charges however if fees apply they can range from as little as 50 to 100 or more depending...
why is a medallion signature guarantee so hard to get
medallion signature guarantees expose financial institutions to risks and liabilities therefore they do not issue them readily or to just anyone typically they are provided for well established customers for a nominal fee the bottom linethe medallion signature guarantee validates the identity and signature of a party t...
what is a media kit
a media kit is a package of information assembled by a company to provide basic information about itself to reporters the media kit is a promotional public relations tool that can serve several functions these functions include promoting the launch of a new company or announcing the launch of a new product or service b...
what is the median
the term median refers to a metric used in statistics it is the middle number in a sorted ascending or descending list of numbers and can be more descriptive of that data set than the average it is the point above and below which half 50 of the observed data falls and so represents the midpoint of the data the median i...
how do you calculate the median
the median is the middle value in a set of data first organize and order the data from smallest to largest to find the midpoint value divide the number of observations by two if there is an odd number of observations round that number up and the value in that position is the median if the number of observations is even...
where is the median in a normal distribution
in the normal distribution or bell curve the median mean and mode are all the same value and fall at the highest point in the center of the curve
when are the mean and median different
in a skewed data set the mean and median will typically be different the mean is calculated by adding up all of the values in the data and dividing by the number of observations if there are sizable outliers or if the data clumps around certain values the mean average will not be the midpoint of the data for instance i...
what is medicaid
the term medicaid refers to a public health insurance program that provides health care coverage to low income families and individuals in the united states the program is jointly funded by the federal government and individual states it is operated at the state level which means that coverage and administration vary g...
what is the medical cost ratio mcr
medical cost ratio mcr also referred to as medical loss ratio is a metric used in the private health insurance industry the ratio is calculated by dividing total medical expenses paid by an insurer by the total insurance premiums it collected a lower ratio likely indicates higher profitability for the insurer as it sig...
how the medical cost ratio mcr works
medical insurers collect premiums from customers in exchange for assuming liability for funding future medical insurance claims the insurer reinvests the premiums they collect generating a return on investment in order to be profitable the insurer must collect premiums and generate investment returns greater than both ...
what is a medium of exchange
a medium of exchange is an intermediary instrument or system used to facilitate the purchase and sale of goods and services between parties for a system to function as a medium of exchange it must represent a standard of value further all parties to the transaction must accept that standard in modern economies the medi...
how a medium of exchange works
a traditional barter system only works when both parties to a transaction have something that the other party wants even then it works only when both parties agree on the value of the goods that each is offering is one chicken worth two bars of soap or three the haggling must have been endless thus introducing a medium...
what is a good medium of exchange
a medium of exchange works if its value is immediately recognizable reasonably stable and portable it then serves its purpose as an intermediary for the exchange of goods or services between two parties
what is a bad medium of exchange
a currency is only as good as the government that issues it out of control inflation political instability and government mismanagement are reflected in the value and stability of a nation s currency for example the worst currency in the world at this time according to world atlas is the venezuelan bolivar 2 once a str...
what was the first medium of exchange
the earliest medium of exchange may have been a coin issued about 2 600 years ago in lydia an ancient kingdom in what is now western turkey the coin was made of a gold and silver alloy it was stamped with an official government image and the metal had a guaranteed weight and purity 3gold and other metals may have been ...
what is a medium term note mtn
a medium term note mtn is a note that usually matures in five to 10 years a corporate mtn can be continuously offered by a company to investors through a dealer with investors being able to choose from differing maturities ranging from nine months to 30 years though most mtns range in maturity from one to 10 years unde...
what is a melt up
a melt up is a sustained and often unexpected improvement in the investment performance of an asset or asset class driven partly by a stampede of investors who don t want to miss out on its rise rather than by fundamental improvements in the economy gains that a melt up creates are considered to be unreliable indicatio...
what is a memorandum of understanding mou
a memorandum of understanding is an agreement between two or more parties outlined in a formal document it is not necessarily legally binding which depends on the signatories intent and the language in the agreement but signals the willingness of the parties to move forward with a contract the mou can be seen as the st...
how a memorandum of understanding mou works
an mou is an expression of agreement to proceed it indicates that the parties have reached an understanding and are moving forward although it is not always legally binding it is a serious declaration that a contract is imminent under u s law an mou is similar to a letter of intent in fact arguably a memorandum of unde...
is an mou legally binding
a memorandum of understanding mou is a legal document but it is not necessarily legally binding although it usually signals a contract is imminent the specific intent and language of the agreement will determine whether it is actually binding or not
what is the difference between an mou and an moa
an mou is a document that describes very broad concepts of mutual understanding goals and plans shared by the parties in contrast an moa memorandum of agreement is a document describing in detail the specific responsibilities of and actions to be taken by each of the parties so that their goals may be accomplished
how do you write an mou
usually a lawyer will draft an mou an mou should clearly state the following what parties are involved the context of the agreement the proposed date of when the agreement will become effective the contact details of all relevant parties the broad purpose of the agreement and what each party is hoping to achieve as wel...
why is an mou important
an mou is important because it allows each party to clearly state their objectives and what they expect from one another drafting an mou can help solve any disputes before each party enters into a full legally binding contract the bottom linea memorandum of understanding mou is a starting point of negotiations between ...
what is mental accounting
mental accounting refers to the different values a person places on the same amount of money based on subjective criteria mental accounting is a concept in the field of behavioral economics developed by economist richard h thaler it contends that individuals classify funds differently and are therefore prone to irratio...
why do we do mental accounting
people have a natural tendency to treat money differently depending on factors such as its origin and intended use that way of thinking gradually makes less sense the more you think about it and can end up actually being detrimental to our finances
is mental accounting a behavioral bias
yes behavioral biases can be described as irrational beliefs or behaviors that unconsciously influence our decision making and mental accounting can be described as resulting in illogical ways of viewing and managing our money
how can mental accounting be prevented
the key to dealing with mental accounting and not succumbing to it is to treat money as interchangeable and not give it labels don t consider certain money less important because it came from an unexpected source or continue to park money in a savings account paying little to no interest when you have debts to repay wi...
what are menu costs
menu costs are a type of transaction cost incurred by firms when they change their prices menu costs are one microeconomic explanation offered by new keynesian economists for macroeconomic price stickiness which may cause an economy to fail to adjust to changing macroeconomic conditions understanding menu costsmenu cos...
how expensive it is to change prices depends on the type of firm and the technology in use for example it may be necessary to reprint menus update price lists contact a distribution and sales network or manually re tag merchandise on the shelf even when there are few apparent menu costs changing prices may make custome...
menu costs may be small in some industries but there is often sufficient friction and cost at scale to exert influence on the business decision of whether to reprice or not in a 1997 study store level data from five multi store supermarket chains was examined to directly measure menu costs the study found that menu cos...
what is mercantilism
mercantilism was an economic system of trade that spanned the 16th century to the 18th century mercantilism was based on the principle that the world s wealth was static and consequently governments had to regulate trade to build their wealth and national power many european nations attempted to accumulate the largest ...
what were the main beliefs of mercantilism
mercantilism s original foundation included beliefs that the world had limited wealth in the form of gold and silver that nations had to build their stores of gold at the expense of others that colonies were important for supplying labor and trading partners that armies and navies were crucial to protecting trade pract...
what s the difference between capitalism and mercantilism
one difference is the role that the state plays capitalism calls for a minimum of government intervention and ownership of capital trade and industry by private entities and individuals mercantilism involves state control and regulation capitalism is said to promote individual freedom mercantilism is said to suppress i...
is mercantilism still used today
yes to some extent it exists in certain countries whose governments seek to maintain control over property ownership trade and the creation of wealth the bottom linethe precursor to free trade economic theory mercantilism reigned supreme for three centuries mercantilism s theory relating to financial wealth building an...
what is merchandising
merchandising is the presentation and promotion of goods that are available for purchase for both wholesale and retail sales this includes marketing strategies display design and competitive pricing including discounting merchandising is important for retailers looking to cultivate their brand improve the experience of...
what are the types of merchandising companies
merchandising broadly speaking refers to any entity that engages in selling a product under this definition there are two types of merchandising companies namely retail and wholesale retailers sell their products directly to consumers while wholesalers buy from manufacturers and sell to retailers
what does merchandising entail
essentially merchandising is the promotion and sale of products it often is used to mean retail sales itself in that its goal is to influence the buying decisions of consumers however it should not be confused with the sale itself it is the process leading up to a sale it includes the determination of quantities settin...
what is the difference between a merchandising and a service company
a merchandising company both wholesale and retail sells tangible goods to its consumer these companies incur costs such as labor and materials to present and ultimately sell products service companies do not sell tangible goods to produce income instead they provide their expertise as a service to their clients example...
what are the four main categories of retail merchandise
there are essentially four types of retail merchandise and most retailers specialize in one of the four classes however especially savvy retailers merchandise their stores with products from all four categories shopping products are the main class of retail merchandise comprising products consumers want are willing to ...
what is a merchant bank
a merchant bank is a financial institution that conducts underwriting loan services financial advising and fundraising services for large corporations and high net worth individuals hnwi merchant banks specialize in providing services for private corporations unlike retail or commercial banks merchant banks do not typi...
how merchant banks work
merchant banks are non depository financial institutions and companies that deal with international finance for multinational corporations these banks differ from other types of financial institutions in that they offer financial services such as private equity fundraising and business loans to private companies 12as s...
what is a merchant bank account
a merchant bank account is a bank account for business clients these accounts are set up to receive debit and credit cards or other forms of electronic payment
what does merchant services mean on a bank statement
merchant services providers are financial intermediaries between a bank and its business clients they may help businesses handle payment processing cash advances online transactions check writing and cashing or other necessary services to maintain cash flow can i open an account at a merchant bank merchant banks are no...
what is the merchant discount rate
the merchant discount rate mdr is a fee that merchants and other businesses must pay to a payment processing company on debit or credit card transactions the mdr typically comes in the form of a percentage of the transaction amount it is also referred to as a transaction discount rate tdr or a discount rate understandi...
when merchants and other businesses want to accept payments from debit or credit cards they must first set up an account with a payment processing company payment processors serve as intermediaries between a business and the various banks that issue debit and credit cards the merchant discount rate is what the business...
payment processors have well established infrastructures and fee schedule arrangements in place to support all types of merchant payments most local and e commerce merchants can expect to pay a 1 to 3 fee for payment processing of each transaction
how payment processing works
payment processing companies help facilitate commerce worldwide in return for a cut in addition to point of sale pos and online services many now offer options for extended payment plans loans and lines of credit merchants have a range of options available for payment processing they can use fintech company services su...
how much merchants pay for payment processing
merchants and other businesses have numerous payment processing providers to choose from which offer varying fee schedules depending on the size of the business and types of transactions merchant discount rates for e commerce transactions are typically higher due to added security costs for example chase pos payment so...
what is an interchange fee
an interchange fee often referred to as interchange is a portion of the merchant discount rate that the payment processor pays to the card issuer used in a transaction typically a bank in addition to the interest charged to cardholders credit card issuers earn money through interchange fees which are also called swipe ...
do merchants pay more when you use credit vs debit
merchants tend to pay lower fees when the customer uses a debit card rather than a credit card according to the national retail federation swipe fees for credit cards average about 2 while fees for debit cards from the nation s largest banks are capped by the federal reserve at 21 cents per transaction plus 0 05 of the...
why do merchants pay higher fees for online transactions
according to credit card companies online transactions involve more financial risk than in person transactions where both the customer and their physical card are on hand the higher merchant discount rates for online transactions are said to reflect that in credit industry jargon these are often referred to as card pre...
what is a merger
a merger is an agreement that unites two existing companies into one new company there are several types of mergers and reasons companies complete mergers mergers and acquisitions m a are commonly done to expand a company s reach expand into new segments or gain market share all of these are done to increase shareholde...
how a merger works
a merger is the voluntary fusion of two companies on broadly equal terms into one new legal entity the firms that agree to merge are roughly equal in terms of size customers and scale of operations for this reason the term merger of equals is sometimes used acquisitions unlike mergers are generally not voluntary and in...
when two companies that produce parts or services for a product merger the union is referred to as a vertical merger a vertical merger occurs when two companies operating at different levels within the same industry s supply chain combine their operations such mergers are done to increase synergies achieved through cos...
examples of mergersanheuser busch inbev bud is an example of how mergers work and unite companies together the company is the result of multiple mergers consolidations and market extensions in the beer market the renamed company anheuser busch inbev is the result of the mergers of three large international beverage com...
what is a horizontal merger
a horizontal merger is when competing companies merge companies that sell the same products or services the t mobile and sprint merger is an example of a horizontal merger meanwhile a vertical merger is a merger of companies with different products such as the at t and time warner combination
what is an spac merger
a special purpose acquisition company spac merger generally occurs when a publicly traded spac uses the public markets to raise capital to buy an operating company the operating company merges with an spac and becomes a publicly listed company
what is a reverse merger
a reverse merger also known as a reverse takeover rto is when a private company purchases a publicly traded company for instance the new york stock exchange nyse completed a reverse merger with archipelago holdings in 2006 13the bottom linemergers occur when two or more companies combine to make one larger one they are...
what is merger arbitrage
merger arbitrage often considered a hedge fund strategy involves simultaneously purchasing and selling the respective stock of two merging companies to create riskless profits because there is the uncertainty of the deal being completed the stock price of the target company typically sells at a price below the acquisit...
when a corporation announces its intent to acquire another corporation the acquiring company s stock price typically decreases and the target company s stock price increases to secure the shares of the target company the acquiring firm must offer more than the current value of the shares the acquiring firm s stock pric...
however the target company s stock price typically remains below the announced acquisition price which is reflective of the deal s uncertainty in an all cash merger investors generally take a long position in the target firm if a merger arbitrageur expects a merger deal to break the arbitrageur may short shares of the ...
what are mergers and acquisitions m a
mergers and acquisitions m a are the different ways companies are combined entire companies or their major business assets are consolidated through financial transactions between two or more companies a company may all of these ways of combining or consolidating assets are m a activities the term m a also is used to de...
when one company takes over another and establishes itself as the new owner the purchase is called an acquisition unfriendly or hostile takeover deals in which target companies do not wish to be purchased are always regarded as acquisitions however an acquisition can also be done with the willing participation of both ...
on the other hand a merger describes two firms that join forces to move forward as a single new entity rather than remain separately owned and operated in general the two firms are of approximately the same size and this action is known as a merger of equals for example when daimler benz and chrysler merged the two sep...
how mergers are structured
mergers can be structured in different ways based on the relationship between the two companies involved in the deal mergers may also be distinguished by following two financing methods each with its own ramifications for investors as the name suggests this kind of merger occurs when one company purchases another compa...
how acquisitions are financed
a company can buy another company with cash stock assumption of debt or a combination of some or all of the three at times the investment bank involved in the sale of one company might offer financing to the buying company this is known as staple financing and is done to produce larger and timely bids in smaller deals ...
how mergers and acquisitions are valued
both companies involved on either side of an m a deal will value the target company differently the seller will obviously value the company at the highest price possible while the buyer will attempt to buy it for the lowest price possible fortunately a company can be objectively valued by studying comparable companies ...
how do mergers differ from acquisitions
in general acquisition describes a transaction wherein one firm absorbs another firm via a takeover the term merger is used when the purchasing and target companies mutually combine to form a completely new entity because each combination is a unique case with its own peculiarities and reasons for undertaking the trans...
why do companies acquire other companies
two of the key drivers of capitalism are competition and growth when a company faces competition it must both cut costs and innovate at the same time one solution is to acquire competitors so that they are no longer a threat companies also grow by acquiring new product lines intellectual property human capital and cust...
what is a hostile takeover
friendly acquisitions are most common and occur when the target firm agrees to be acquired its board of directors and shareholders approve of the acquisition and these combinations often work for the mutual benefit of the acquiring and target companies unfriendly acquisitions commonly known as hostile takeovers occur w...
what is merrill lynch co
merrill lynch co is the former name of a prominent wall street investment firm since its acquisition by bank of america bac in 2009 it has become known simply as merrill and operates as a wealth management division of bank of america founded by charles e merrill in 1914 merrill lynch co has long been one of the america...
what is the merton model
the merton model is a mathematical formula that stock analysts and commercial loan officers among others can use to judge a corporation s risk of credit default named for economist robert c merton who proposed it in 1974 the merton model assesses the structural credit risk of a company by modeling its equity as a call ...
what does the merton model tell you
the merton model allows for easier valuation of a company and helps analysts determine if it will be able to retain solvency by analyzing the maturity dates of its debt and its debt totals the merton model calculates the theoretical pricing of european put and call options without considering dividends paid out during ...
what is a call option
a call option is a contract that allows the buyer to purchase a stock or other financial asset at a specified price by or on a certain date
what is the difference between european and american options
european options can be exercised only on their expiration date while american options can be exercised anytime
what is a risk free interest rate
a risk free interest rate is the theoretical rate of return on an investment carrying zero risk it is theoretical because no investment is entirely without risk although some come closer than others the bottom linethe merton model developed by economist robert c merton is a mathematical formula that assesses the struct...
what are metrics
metrics are measures of quantitative assessment commonly used for assessing comparing and tracking performance or production generally a group of metrics will typically be used to build a dashboard that management or analysts review on a regular basis to maintain performance assessments opinions and business strategies...
what is a metropolitan statistical area msa
metropolitan statistical areas msa are delineated by the u s office of management and budget omb as having at least one urbanized area with a minimum population of 50 000 1understanding metropolitan statistical areas msa a metropolitan statistical area msa formerly known as a standard metropolitan statistical area smsa...
what size is a metropolitan statistical area
a metropolitan statistical area consists of a location that has at least one urbanized area and a population of at least 50 000 people 1
what is the difference between msa and csa
a metropolitan statistical area msa is an area with at least one urbanized area and a population of at least 50 000 people this includes the core jurisdiction plus adjacent counties that have a high degree of social and economic relations with the core county a combined statistical area csa is two or more msas or micro...
what is the largest metro area in the world
tokyo is the largest metro area in the world with a total metropolitan population of 36 5 million 7the bottom linea metropolitan statistical area msa is determined by the u s office of management and budget omb as a location with at least one urbanized area and at least 50 000 people msas are typically cities and their...
what is mezzanine debt
mezzanine debt occurs when a hybrid debt issue is subordinated to another debt issue from the same issuer mezzanine debt has embedded equity instruments attached often known as warrants which increase the attractiveness of the subordinated debt and allow greater flexibility when dealing with bondholders mezzanine debt ...
what is equity financing
equity financing is a means of raising capital through company shares the shares are sold by the company to investors granting them a percentage of ownership rights 3
what is a hybrid security
hybrid securities share characteristics of stocks and bonds they include preferred stocks convertible bonds and exchange traded notes risks and returns hover somewhere in the middle between stocks and bonds an investor can convert a convertible bond into a stock relatively easily but these bonds generally offer lower i...
what is a warrant in finance
warrants are securities that come with the right but not the obligation to purchase them they re sometimes included with other bonds and shares or awarded to employees as an incentive the price and a deadline to act are set at inception 5the bottom linemezzanine debt is the result of a hybrid debt issue being subordina...
what is mezzanine financing
mezzanine financing is a hybrid of debt and equity financing that gives a lender the right to convert debt to an equity interest in a company in case of default generally after venture capital companies and other senior lenders are paid in terms of risk it exists between senior debt and equity mezzanine debt has embedd...
how mezzanine financing works
mezzanine financing bridges the gap between debt and equity financing and is one of the highest risk forms of debt it is senior to pure equity but subordinate to pure debt however this means that it also offers some of the highest returns to investors in debt when compared to other debt types as it often receives rates...
when securing mezzanine financing owners may sacrifice some control and upside potential due to the loss of equity lenders may have a long term perspective and may insist on a board presence owners also pay more in interest the longer the mezzanine financing is in place loan agreements will also often include restricti...
mezzanine lenders are at risk of losing their investment in the event of the bankruptcy of the borrowing company in other words when a company goes out of business the senior debt holders get paid first by liquidating the company s assets if there are no assets remaining after the senior debt gets paid off mezzanine le...
what is a mezzanine type loan
a mezzanine loan is a source of capital that is between less risky senior debt and higher risk equity with some of the features of both mezzanine loans are usually subordinated to senior debt or can be preferred equity with a fixed rate coupon or divided they may also have some form of participation rights such as warr...
what is mezzanine financing in real estate
a real estate mezzanine loan is generally used to pay for acquisitions or development projects they are subordinate to senior debt within the entity s capital structure but receive priority over preferred and common equity mezzanine bridge loans cover the cost of a purchase or development project that is not covered by...
how do mezzanine funds make money
a mezzanine fund is a pool of capital that seeks to invest in mezzanine finance for the purposes of acquisitions growth recapitalization and management or leveraged buyouts investors in a mezzanine fund receive a rate of return of 13 to 35 higher than offered on most forms of debt financing 4as with all pooled investme...
are mezzanine loans secured
mezzanine debts can be secured or unsecured those used in real estate are often indirectly secured to some extent by the borrower s real estate interests it can be said that in corporate mezzanine financing the debt is secured by the borrower s ownership interest in the company but because a mezzanine loan is fairly lo...
who is michael bloomberg
michael bloomberg is a billionaire businessman publisher philanthropist and a former three term mayor of new york city the founder and owner of bloomberg lp he is one of the wealthiest people in the world with an estimated net worth of 82 billion as of june 23 2022 according to forbes 1 on nov 24 2019 bloomberg entered...
how rich is michael bloomberg
michael bloomberg is a billionaire whose fortune is estimated to be worth 82 billion 1did michael bloomberg run for president yes former new york city mayor michael bloomberg announced his candidacy in 2019 entering the 2020 presidential race but he dropped out of the race in march 2020
how long was michael bloomberg mayor of nyc
he served as the mayor of nyc from 2002 until the end of 2013 when he served as mayor he helped push the smoking ban into effect 22
is michael bloomberg married
michael bloomberg was married to the former susan brown from 1975 to 1993 they have two daughters diana lancaster taylor a former new york state superintendent of banks was known as new york city s de facto first lady during bloomberg s tenure as mayor
michael milken is a billionaire financier best known as the man behind the junk bond boom of the late 1970s and 1980s milken found a way to lend money to riskier companies struggling to access credit leading parts of the economy to boom and milken to make a fortune 1
greed eventually got the better of milken and he was sent to prison for securities fraud since getting released the junk bond king has remained in the spotlight this time mainly for his charitable donations and focus on education and medical research early life and educationmichael milken was born on july 4 1946 in enc...
what is the milken family foundation
the milken family foundation is a private foundation established by michael milken and his brother in 1982 that primarily focuses on supporting education and medical research 10