Business
Dark pools in stock markets
These platforms allow institutional investors, like hedge funds, pension funds, and large banks, to trade large quantities of stocks away from the public eye, without revealing their orders to the market until after the transaction is completed. The primary purpose of dark pools is to avoid slippage, which occurs when large trades impact the market price of a security.
By Badhan Sen11 months ago in Chapters
Risks of high-frequency trading
These trades often occur in fractions of a second, allowing traders to capitalize on minute price movements. While HFT has become an essential part of modern financial markets, its rapid growth has raised concerns about its potential risks. In this article, we will explore the risks associated with high-frequency trading.
By Badhan Sen11 months ago in Chapters
Role of financial intermediaries
These intermediaries play a crucial role in the functioning of modern economies by facilitating the flow of funds from savers to borrowers, helping individuals and businesses manage their financial needs efficiently. Their primary role is to reduce the costs and risks associated with financial transactions, ensuring that capital is allocated efficiently to promote economic growth.
By Badhan Sen11 months ago in Chapters
Understanding municipal bonds
These projects could range from building schools, highways, and hospitals to funding public transportation systems or water supply improvements. Municipal bonds are a vital part of the financial market, providing a means for governments to borrow money for long-term infrastructure development while offering investors a relatively safe, tax-advantaged investment option.
By Badhan Sen11 months ago in Chapters
Repo and reverse repo transactions
These short-term borrowing and lending arrangements are essential for the functioning of the financial system. They play a significant role in liquidity management for financial institutions, government securities trading, and central bank operations. These transactions help manage short-term funding needs, market liquidity, and interest rates.
By Badhan Sen11 months ago in Chapters
Impact of interest rates on bond prices
Bonds are a type of debt instrument, where an issuer borrows money from investors and agrees to pay them back with interest over a predetermined period. The price of a bond is inversely related to interest rates, meaning that when interest rates rise, bond prices generally fall, and when interest rates fall, bond prices tend to rise. This relationship is crucial for investors and policymakers alike, as it affects investment strategies, financial markets, and the broader economy.
By Badhan Sen11 months ago in Chapters
π-(πππ)-πππ-πππππHow to get my Coinbase Money back?(ofFicial^GuIDe)
If you're trying to get your money back from Coinbase, the steps you should take depend on the issue you're facing. Here are some common scenarios and how to resolve them:
By velleπ-(πππ)-πππ-πππππ11 months ago in Chapters
Money market instruments
These instruments are an essential part of the global financial system and play a crucial role in helping manage the supply of money within the economy. The characteristics of money market instruments include low risk, high liquidity, and short maturity periods, typically ranging from a few days to one year.
By Badhan Sen11 months ago in Chapters
Role of credit rating agencies
These agencies help investors make informed decisions, facilitate market transparency, and enhance the efficiency of capital allocation. The three most prominent credit rating agencies globally are Standard & Poorβs (S&P), Moodyβs Investors Service, and Fitch Ratings. This essay explores the functions, importance, and criticisms of credit rating agencies, shedding light on their influence on financial markets and economies.
By Badhan Sen11 months ago in Chapters
Securitization in finance
By pooling various types of financial assetsβsuch as mortgages, auto loans, credit card receivables, or other forms of debtβsecuritization enables these assets to be sold to investors in the form of bonds or other securities. This process has become a cornerstone of modern finance, offering benefits such as risk diversification, liquidity enhancement, and expanded access to capital markets. However, it also presents risks and complexities, as evidenced by its role in the 2008 financial crisis. This article explores the mechanics, advantages, risks, and regulatory aspects of securitization.
By Badhan Sen11 months ago in Chapters
Exchange-traded funds (ETFs) explained
An ETF is a type of investment fund that holds a collection of assets, such as stocks, bonds, commodities, or a mix of them, and trades on stock exchanges much as an individual stock. In this article, we will explore the structure, benefits, types, and considerations of investing in ETFs.
By Badhan Sen11 months ago in Chapters
Impact of quantitative easing
It involves the large-scale purchase of government bonds and other financial assets to increase the money supply, lower long-term interest rates, and encourage lending and investment. Since the 2008 global financial crisis, QE has been prominently used by major central banks, including the Federal Reserve, the European Central Bank, and the Bank of Japan. While QE has been effective in preventing economic collapse, its impact has been multifaceted, with both positive and negative consequences.
By Badhan Sen11 months ago in Chapters
