Investors need to consider various factors when making decisions about their investments. While some of these factors may relate to a specific investment, others may also apply to all assets. One of these includes economic indicators. These may further include leading, lagging, or coincident economic indicators. These classifications exist due …

A country’s economy dictates many factors, including how businesses or investments perform. Therefore, it is crucial for investors to consider these factors to make well-informed decisions. For that, they need to identify some economic indicators. However, it is crucial to understand what economic indicators first. What are Economic Indicators? Economic …

Gross Domestic Product (GDP) represents an estimate of a country’s total value of finished goods and services. It considers these goods and services over a specific period, usually every year. Overall, GDP is an indicator of a country’s total economic activity. High GDPs represent higher production of goods and services. …

Interest rate defines the rate at which a borrower pays interest on a loan’s principal amount from a lender. Every loan transaction will include an interest rate. For borrowers, lower interest rates are preferable as it means they have to bear lower expenses. On the other hand, lenders will prefer …

Investors have to consider various factors when contemplating the decision related to an investment. Usually, the main aspects they take into account are the risks and returns they get from it. However, other factors also play a role in their decision-making process. One of these includes the timing of the …

Investors need to weigh in various factors when evaluating private companies. These may include the company’s book value, its profits, its cash flows, etc. Usually, public companies are easier to evaluate since most of the information is available through the stock market. However, the same does not apply to private …

Lenders assess various factors when providing a loan to a borrower. These factors may include the borrower’s credit ratings, history, security offered, etc. Based on this evaluation, lenders decide on whether to provide the loan or not. It also helps lenders measure the return they want to get from the …

Every investment comes with risks, which also dictate the returns that investors can expect on it. Usually, investors expect to earn returns that exceed the income they will get for zero-risk investments. For that purpose, they can use the risk-free rate. This rate also adjusts for any inflation changes in …

What is an Endowment Fund? An endowment fund represents a restricted financial asset. Endowment funds are common among nonprofit organizations. These contain capital investments and any income leveraged by the nonprofit organization to fund the overall mission. For endowment funds, nonprofit organizations can only use the earnings made through them. …

A fund represents a pool of money collected by investors that aims to meet a particular purpose. There are various types of funds that have specific goals. Based on these goals, investors can select a fund and invest in it. Usually, investors also appoint an investment fund manager responsible for …