Investing in stocks, bonds, cash, and other asset classes is prevalent among investors. Usually, they make these investments themselves or through investment advisors. Some investors may also pool their capital and invest it into a fund. These funds have managers that make investments on their behalf. These may include hedge …

What are Preference Shares? Preference shares, also known as preferred stock, are a type of stock that companies issue. Under some specific circumstances, the shares will get preferential treatment over ordinary or common shares. These circumstances may include the distribution of dividends or compensation in case the underlying company liquidates. …

Companies that go through a challenging time usually have limited options when it comes to raising funds. In some cases, these companies may also go into bankruptcy. Therefore, most investors or creditors don’t trust them with finance. However, these companies can still raise finance through their limited options. One of …

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 …