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What is the Federal Budget?
A budget is a plan for expenses that seeks to keep them within the limitations of revenue inflows so that a business or organization does not operate at a deficit. The Federal Budget is much larger and more complicated that most budgets, but it works similarly. Because the use of funds is such an important issue on such a large scale, there are several steps needed to create and enact a budget. A Federal Budget is created every year. It originates with a proposed budget from the President. The two houses of Congress go through significant deliberation in committees and on the floor, working on the Appropriations Bills. They then reconcile their budgets between the two houses and send it to the President for approval. Continue reading...
What is Chapter 11?
Chapter 11 is a type of bankruptcy filing a company can make to give itself time to reorganize and hopefully continue business. There are different types of bankruptcy filings a person or business can make, depending on how overwhelming their debt load is. Chapter 11 is a kind of bankruptcy filing that allows the corporate leadership to stay in control of a company while trading freezes on their stock and the company and its debts are reorganized. This is called “debtor in possession.” Continue reading...
What is a Bond Purchase Agreement?
If a municipality or company decides to issue bonds, they will need to form an alliance with an underwriting entity to help them price and distribute the bonds, and the Purchase Agreement outlines their contract. Underwriters on debt issues are normally large investment banks. They help the issuer, which could be a city government or company, structure the bonds and price them in a way that is suitable to their needs, and also agrees to help them distribute them. Continue reading...
What is the Federal Open Market Committee?
The Federal Open Market Committee (FOMC) is the monetary policy-making body of the Federal Reserve System. The FOMC makes the decision on “raising” or “lowering” interest rates, which refers to moves in the federal funds rate. The FOMC consists of 12 members, which is comprised of the seven members of the Board of Governors and 5 of the 12 Reserve Bank presidents. The president of the Federal Reserve Bank of New York always has a seat on the FOMC, while the other presidents rotate for one year terms. This policy-making body meets eight times a year to decide monetary policy, which consists of setting the benchmark interest rate and make decisions regarding the supply of money. All dependent on economic conditions. Continue reading...
What Is the Taiwan Stock Exchange?
The Taiwan Stock Exchange (TAI) .TW, also known as the TWSE, has played a pivotal role in Taiwan's financial landscape since its establishment in 1961. This exchange, headquartered in Taipei, serves as the primary hub for securities trading in the region. Over the years, it has evolved to become a critical player in both domestic and international financial markets. The TWSE boasts a diverse range of listed securities, including stocks, government bonds, convertible bonds, exchange-traded funds (ETFs), call warrants, put warrants, Taiwan Depositary Receipts (TDRs), and REIT beneficiary securities. Continue reading...
What is the definition of a fiduciary, and could you provide some examples to illustrate this concept?
Unlock the world of fiduciaries, trusted guardians of interests, ethics, and legality. Discover their diverse roles from estate management to corporate governance. Learn why the fiduciary duty sets them apart. #Finance #FiduciaryRoles Continue reading...
What is an Investment Club?
An investment club can be a term used for a group that organizes itself for the purpose of pooling investment dollars and participating in the market, or for a group that meets for informational and educational purposes. Clubs that actually invest sometimes organize themselves as LLCs and establish a system for how to choose and manage their investments as a group. Even though “investment club” may sound like an informal and relatively unregulated way to invest with pooled assets, they are actually subject to regulation by the SEC. Continue reading...
What is the definition of the Hang Seng Index (HSI)?
Explore the Hang Seng Index (HSI), Hong Kong's premier equity market benchmark. From its history to structure, understand the HSI's role as a reflection of economic vibrancy and investment trends in one of Asia's financial hubs. A vital guide for investors & market enthusiasts. Continue reading...
What are the key distinctions between the Dow Jones Industrial Average and the S&P 500?
📈 DJIA vs. S&P 500: Uncover the Differences 🤝 Explore the contrasting worlds of Dow Jones Industrial Average (DJIA) & S&P 500. From history to methodology, grasp the nuances that make these indices unique. Dive into the heart of the U.S. stock market with this insightful breakdown. 💼📊 #StockMarket #Investing Continue reading...
What is the definition of the Secured Overnight Financing Rate (SOFR), and how does it relate to its historical development?
Discover the Evolution of SOFR! 📈 From replacing LIBOR to its foundation in real transactions, learn how this benchmark interest rate is shaping the financial world. Explore its historical development and impacts on derivatives and loans. Stay updated in the ever-evolving finance landscape. #SOFR #FinanceEvolution Continue reading...
What Are the Top 8 Most Tradable Currencies in Forex and Their Economic Drivers?
Dive into the forex market's heartbeat with our in-depth analysis of the top 8 tradable currencies. From the dominance of the U.S. dollar to the allure of the South African rand, each currency tells a story shaped by its central bank, economic policies, and global standing. Whether you're a seasoned trader or new to the forex scene, our guide offers valuable insights into the currencies that make the financial world go round. Uncover the intricacies of the forex giants and the nuances that drive their value. Get ready to trade with knowledge as your currency. Continue reading...
What Are the Roles, Responsibilities, and Consequences of a Guarantor?
Ever wondered who steps in when a borrower defaults on a loan? Dive into the intricate world of guarantors, the unsung heroes of the financial realm, and uncover the responsibilities, risks, and protections associated with this pivotal role. Continue reading...
What is Appraisal Fraud?
Appraisal Fraud is the intentional misrepresentation of the value of a home using an appraiser’s statement. Appraisals are necessary for large loans and real estate transactions, and appraisal fraud is common. Fraud can be committed in this manner by the appraiser or by a person falsifying an appraiser’s statement. A common example would be overstating the value of a home so that a borrower can get a larger home equity loan. Continue reading...
What Does the SPY ETF, the SPDR S&P 500 ETF Trust, Contain?
Ever wondered about the allure of the SPY ETF? Dive into the legacy of this pioneering fund, its ties to the S&P 500 Index, and its impact on the investment landscape. Discover the nuances that set it apart and why it remains a cornerstone for investors navigating the U.S. equity market Continue reading...
Top Shale Gas Stocks
In the dynamic world of energy, shale gas stands out as a key driver of the global energy transition. With its abundant reserves and the technological advancements enabling its extraction, shale gas is not just an energy source but a catalyst for economic growth and energy security. This article delves into the shale gas industry, spotlighting the top companies that are not only leading the charge in shale gas production but also presenting compelling investment opportunities in an era marked by fluctuating oil prices and a growing emphasis on cleaner energy sources. Continue reading...
What is a CUSIP?
CUSIP is basically like a Dewey Decimal number for stocks and U.S./local government bonds. CUSIP stands for Committee on Uniform Securities Identification Procedures. CUSIPs are alphanumeric identifiers of certain types of securities, but most commonly used for stocks and bonds. The first six characters identify the issuer and use letters; the seventh and eighth characters (which can be alphabetical or numerical) identify the type of issue; and the last digit is used as a check digit. Continue reading...
What is the Nikkei 225?
The “Nikkei” is the most referenced index for measuring Japanese stocks. The Nikkei 225 - often just referred to as “the Nikkei” - is an index that tracks the performance of Japan’s top 225 publicly-traded companies on the Tokyo Stock Exchange. It is to Japan what the Dow Jones Industrial Average is to the United States. The Nikkei is a price-weighted index. What is a Bear Straddle? What is Foreign Exchange? Continue reading...
What is the Federal Reserve System?
The Federal Reserve System was established by the Federal Reserve Act of 1913, which created a network of reserve banks that could help to prevent economic meltdowns by serving as a regulator and a source of funds. There are 12 regional Federal Reserve Banks which monitor banks in their jurisdiction and make loans when necessary. The Federal Reserve System is sometimes referred to as one bank, but it is in fact a network of 12 banks with 24 branches, overseen by a Board with members nominated by the US Government. Continue reading...
What is a Pension?
Pensions are income streams guaranteed to employees upon their retirement. A Pension is a type of Defined Benefit Plan in which your employer promises to pay you a certain amount every month for the rest of your life. Employers who are part of the pension plans are sometimes called pensioners. An employer retains the funds in a trust, usually, and everyone’s pension assets are pooled together in what’s called a Pension Fund. Continue reading...
Sustainable Investing: Top Fossil-Free Stocks and Market Insights
In recent years, the financial world has witnessed a significant shift towards sustainable investing, with a particular emphasis on fossil-free portfolios. This trend is not only a response to increasing environmental concerns but also a strategic financial decision by investors who are looking for long-term, sustainable growth. In this context, let's delve into the details of some of the most notable companies leading the charge in fossil-free investing, and analyze their market capitalizations. Continue reading...