Finance

Negative Correlation

Negative Correlation

Negative correlation is a link between two items or variables in which one of them declines while the other increases. To put it another way, when variable A rises, variable B falls. Inverse correlation is another term for a negative correlation. This formula is used to examine the link between v.....

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Independent Variable (IV)

Independent Variable (IV)

An input, assumption, or driver that is modified in order to analyze its influence on a dependent variable (the outcome) is known as an independent variable (IV). It is a feature of a psychological experiment that is modified or altered by researchers rather than by other factors in the experimen.....

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Deviation Risk Measure

Deviation Risk Measure

The deviation risk measure is a function that is used to assess financial risk and is distinct from other risk assessments. Risk measurement is largely used in the financial industry to assess an investment’s movement and volatility. Traders interested in stocks, options, and other assets w.....

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Passive Investing

Passive Investing

Passive investing (also known as passive management) is an investment technique that aims to optimize returns by reducing the amount of money spent on purchasing and selling. It invests funds using market-weighted indexes and portfolios, avoiding many of the costs associated with more active inve.....

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Down Round (Understanding)

Down Round (Understanding)

A scenario in which the value of a firm at the time of investment is lower than the value of the same business during a prior period or financing round is referred to as a “down round.” It occurs when investors insist on paying a lower price for the company’s stock than in the prior [&h.....

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Down Payment (Understanding, Advantages, and Disadvantages)

Down Payment (Understanding, Advantages, and Disadvantages)

A down payment (also known as a deposit in British English) is a non-refundable sum made ahead for the purchase of a high-priced object such as a vehicle or a house, with the remainder of the payment made through a bank or financial institution loan. It addresses a piece of the absolute price tag.....

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Price to Tangible Book Value (PTBV)

Price to Tangible Book Value (PTBV)

The price to tangible book value (PTBV) is an important indicator for value investors since it compares a company’s Tangible Book Value to its current market price. It expresses the price of a security in relation to the book value of its hard, or tangible assets as recorded in the company&.....

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Asset Valuation

Asset Valuation

Asset valuation is the process of determining the value of a specific asset, such as stocks, options, bonds, buildings, machinery, or land, which is typically done when a firm or asset is being sold, insured, or taken over. Such resources remember ventures for attractive protections like stocks, .....

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Reserve Ratio

Reserve Ratio

The reserve ratio, also known as the bank reserve ratio, the bank reserve requirement, or the cash reserve ratio, is the proportion of deposits that a financial institution must have in cash reserve. It alludes to the part of all-out stores that the business banks are committed to keep up with th.....

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Exchange Rate Mechanism (ERM)

Exchange Rate Mechanism (ERM)

The exchange rate mechanism, or ERM, is a method of setting and stabilizing exchange rates by limiting the amount of movement in the value of a currency. The ERM is a crucial component of every economy’s monetary policy, and central banks use it regularly. If a country uses a fixed exchange.....

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Advantages of Value Engineering

Advantages of Value Engineering

In the engineering stages of a project, value engineering is a creative, team-based approach to seeking and selecting the best alternative for achieving a function that will ultimately save the client money. It is a methodical, organized approach to performing necessary functions in a project at .....

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Bear Raid

Bear Raid

A bear raid is an unlawful activity of conspiring to drive the price of a stock lower by coordinated short selling while disseminating unfavorable rumors about the business being shorted. It’s a stock market technique in which a trader (or a group of traders) tries to drive the price of a s.....

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