Foreign Exchange Controls
Foreign exchange controls are restrictions imposed by the government of a country in foreign currency exchange transactions. In modern times, the control of foreign exchange transactions is an uncommon practice,…
Characteristics of Out of the Money (OTM)
Out of the money is a term in options, there are two out of the money conditions, namely the buy option, known as a put option, and the sell option…
Correlation Coefficient in investment
Correlation coefficient is a numerical measure of several types of correlation in the form of a statistical relationship between two variables. Variables can be two columns of a particular set…
Edgeworth and Bertrand models
In the world of economics, the Edgeworth model is built on the Cournot model. His model examines price and quantity competition between two small firms. So simply every assumption of…
Implicit and Explicit Cost
Explicit costs are clearly stated costs incurred by the business. For example, employee salaries, inputs, utility bills, and rent, among others. These are expenses that are stated in the balance…
Chivas Regal Effect
What is the Chivas Regal Effect? The Chivas Regal Effect is all about the perception of price and quality. Before I explain further, let's flashback to the history of the…
Hold On For Dear Life (HOFD) in cryptocurrency investment
HOFD stands for 'Hold On For Dear Life', an idiom in English which means to persevere with all efforts to stay alive, have given up, and there is no other…
Modigliani and Miller’s theory of capital structure (MM Model)
Understanding the theory of capital structure Modigliani and Miller (MM Model) Many theories attempt to assess the price of a company. Some are based on company debt, based on company…
The theoretical price of rights issue of shares
The theoretical price of rights issue shares is the share price that is considered reasonable after the issuance of new shares with a certain amount and a certain price. Determination…
Monetary Sovereignty, Modern Money Theory
Monetary Sovereignty or monetary sovereignty is defined as a function, role and authority for the existence of the Central bank as the official authority of a country in implementing regulatory…
