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 […]
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
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 […]
Cost Of Capital
The cost of capital refers to the cost of borrowing funds at a certain interest rate. It is an important concept in finance and investment as it helps in determining the cost of various projects and investments. Formula: The cost of capital can be calculated using the following formula: r = (1 + i/n)^(n*t) – […]
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 […]
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 […]
What Is Ipo
Ipo stands for Initial Public Offering. It is the process of taking a private company public. When a company goes IPO, it sells shares of its stock to the public for the first time.
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. […]
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 […]
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 […]
JOIN THE WAITLIST
Add your details and start your
journey toward a better future with Pocketful in your investing career.