Deferred Interest Deferred interest is a deal on what is effectively a loan that allows the borrower to postpone paying interest for a fixed period of time…
Discretionary Income Discretionary income is after-tax income that has been deducted from all contributions that must be made to fulfill current obligations. After paying for required or…
Vertical Line Charting Vertical line charting is a graphical representation of a given asset’s different price points over time, which can range from 15 minutes to five years.…
Advance-Decline Line The advance-decline line (ADL) is a technical indicator that shows the regular difference in the amount of advancing and declining stocks. It’s a stock market…
Debt Capital Markets (DCM) Group A debt capital markets (DCM) group (or team) will work with a client to arrange borrowing and connect them with a global pool of investors…
Security Market Line (SML) The security market line (SML) is a representation of the capital asset pricing model (CAPM) that plots different levels of systemic, or market risk, of…
Capital Market Line (CML) The capital market line (CML) is a theoretical principle that determines the best risk-free asset and market portfolio combinations. It’s a tangent line drawn from…
Efficient Market Hypothesis (EMH) The efficient market hypothesis (EMH) or efficient market theory is a financial economics hypothesis that states that asset prices represent all available information. It is…
Market Efficiency (Definition, Types) Market efficiency is a general concept that refers to any metric that measures the dispersion of information in a market. It refers to the extent…
Efficiency Ratios Efficiency ratios, also known as activity ratios, are measures used to assess a company’s ability to efficiently use its resources, such as capital and assets,…
Mosaic Theory (Finance) The mosaic theory is a technique of research used by security researchers to collect knowledge about a company in the financial world. It is a…
Dividend Recapitalization A dividend recapitalization (also known as a dividend recap) is a financial arrangement in which a business borrows money to pay a big (or “special”)…