Valuation Adjustment Mechanism (VAM): Definition, Agreement, Example, Usage

The term mergers and acquisitions (M&A) refers to the consolidation of companies through financial transactions. This process involves one company acquiring another company’s shares. Several terms and conditions may apply to these transactions. However, these terms may differ from one market to another. The valuation adjustment mechanism is unique to …

Selection Bias: How It Affects Our Lives

Human psychological bias affects us in many different ways. We have recently discussed how recency bias influences our trading. In this post, we’re going to talk about selection bias. Selection bias occurs when a statistical sample is not representative of the entire population. This situation arises, for example, when a …

Could There Be a Bitcoin Crash Next Year?

Could There Be a #Bitcoin Crash Next Year?#BTC #SPYhttps://t.co/tU4VpwLJKV — Harbourfront Technologies (@DerivValuation) December 28, 2021 2021 was a meteoric year for crypto, with bitcoin looking to end the year almost 70% up from its January starting value, the first big crypto company (Coinbase) going public in April, and the …

How Interest Rates Will Affect Stock Markets

The stock markets are unlikely to continue their bull run of the past year in 2022 with investors eying other opportunities as interest rates rise, according to Wharton finance professor Itay Goldstein. Federal Reserve officials last week projected at least three quarter-percentage-point rate increases next year, signaling their concern over …

5x Leveraged Exchange Traded Fund

A leveraged exchange-traded fund (ETF) is a financial instrument that offers the return of an underlying index multiplied by a given leverage factor. The fund usually uses borrowed money, futures, swaps, and other derivatives to amplify the daily price movements of the underlying index. Investing in these exchange-traded funds involves …

Bank of Canada’s working group recommends ending CDOR in mid-2024

Publication of the Canadian dollar offered rate (CDOR), Canada’s primary interest rate benchmark, should end after June 2024, the working group helping to transition Canadian financial markets to risk-free benchmark interest rates said on Thursday. The Canadian Alternative Reference Rate working group (CARR) recommends that Refinitiv Benchmark Services (UK) Limited …