What is an Embedded Derivative? An embedded derivative is a part of a financial instrument that modifies its cash flows by tying it to an underlying asset. Usually, derivatives are separate financial instruments that are independent. However, embedded derivatives are a part of a financial contract. This contract, which holds …

Companies need capital to operate and carry out their business. For established companies, raising finance is not an issue. Usually, these companies have sufficient funds and reserves to continue their business. For startups, the same does not apply. These companies need capital to take off. However, most traditional investors do …

Econometrics has been an area of high interest within the economics world. While the concept comes from the early- to mid-1900s, it has developed rapidly over the last few decades. Econometrics primarily applies to the world of economics. However, it has also contributed a lot to the business world. Before …

Investors have many options when it comes to building a diversified portfolio. These options may include stocks, bonds, cash, etc. However, some investors may go beyond these options to maximize their returns or for diversification. These may include options such as private equity, private debt, real estate, etc. These constitute …

Econometrics and statistics have common overlapping areas that some people may find confusing. While both of these fields deal with statistics and the relationship between data, they are different. Before learning how these two differ from each other, it is crucial to understand what they are. What is Econometrics? The …

The term infrastructure signifies basic physical systems that may be for a market, economy, or region. It may include water and sewer services, shipping, waste management, utilities, electric systems, etc. Due to the high cost involved in it, infrastructure systems are capital intensive. It also represents an asset class. For …

Investing in the stock market has become highly accessible to all investors around the globe. However, the role of investment advisors remains crucial in the process. These individuals can provide significant value to investors when it comes to their portfolios. In exchange for their services, they require compensation. Before understanding …

The Fundamental Law of Active Portfolio Management is a postulate that states that the return from any investment strategy can be improved by adding an active management component to it. The law was first proposed in 1989 by Richard Grinold and Ronald Kahn and has been proven by decades of …

Both econometrics and actuarial science involve similar areas of study. These include statistics, mathematics, economics, and finance. However, they usually have different applications and are prevalent in particular industries. Despite their similarities, however, both of these fields also differ from each other in various aspects. Before understanding those differences, it …

When it comes to style drift in hedge funds, there is a lot of confusion as to what the term actually means. Investors and traders need to understand how this can affect their investments. In order to help you better protect yourself, we will be providing some useful information on …