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Asset Management

Asset management is the process of managing a company’s investments and other assets to maximize returns and minimize risk. It involves making strategic decisions about how to allocate capital to different assets, such as stocks, bonds, real estate, and cash equivalents. Key Functions of Asset Management: 1. Asset Allocation: Determining the optimal mix of assets […]

2 mins read

Irrational Exuberance

Definition: Irrational exuberance is a term used to describe behavior that is characterized by excessive, irrational, and often uncontrollable enthusiasm or passion. It is a psychological state in which one’s emotions and judgments are driven by intense, irrational feelings of excitement or admiration for a particular object, person, or idea. Symptoms: Causes: Examples: FAQs

2 mins read

Accumulated Depreciation

Accumulated depreciation is an account used to track the cumulative depreciation expense for a company’s assets. It is calculated by taking the accumulated depreciation expense for each asset and adding it to the depreciation expense for the period. Formula for accumulated depreciation: Accumulated depreciation = Total depreciation expense – Current depreciation expense Explanation: Uses of […]

1 min read

Technical Analysis

Technical analysis is a type of market analysis that uses mathematical and statistical tools to identify, interpret, and predict future price movements of financial assets. It is based on the principle that past price movements can be used to forecast future movements. Key Concepts: Uses of Technical Analysis: Advantages: Disadvantages: Conclusion: Technical analysis is a […]

2 mins read

Kaizen

Kaizen is a Japanese term that translates to “continuous improvement.” It is a philosophy that emphasizes ongoing, incremental improvements in processes and systems. Kaizen involves making small, continuous changes to processes, products, and services with the aim of enhancing overall quality, efficiency, and customer satisfaction. Principles of Kaizen: Types of Kaizen: Benefits of Kaizen: Examples […]

2 mins read

Brokers

Brokers are intermediaries who act as intermediaries between buyers and sellers in financial transactions. They bring together buyers and sellers, facilitate transaction execution, and provide a range of services. Types of Brokers: Key Functions of Brokers: Regulation: Brokers are regulated by government agencies, such as the Securities and Exchange Commission (SEC) in the United States. […]

3 mins read

Liquidity Adjustment Facility (LAF)

The LAF is a tool used by the central bank to influence short-term interest rates and liquidity conditions in the banking system. It allows banks to borrow or lend excess liquidity, depending on their needs, through a repurchase agreement with the central bank. Key features of LAF: Additional notes: Here are some additional resources you […]

2 mins read

Business Cycle

The business cycle is a long-term fluctuations of economic activity characterized by periods of growth, contraction, and recovery. It is a series of alternating periods of economic expansion and contraction, generally occurring over a period of five to ten years. Key phases of the business cycle: 1. Expansion:– characterized by growth in GDP, employment, and […]

3 mins read

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