Finance

Liquidity risk is the risk that a company or bank may be unable to meet short term financial demands. It is a financial risk that…

Net Present Value (NPV) – Net present value (NPV) is an investment measure that tells an investor whether the investment is achieving a target yield…

Financial repression is a term that describes measures by which governments channel funds from the private sector to themselves as a form of debt reduction.…

Letter of Allotment It refers to a letter that intimates the share applicants the fact that they have been allotted shares. It is a letter…

A building society is a financial institution owned by its members as a mutual organization. It is a financial organization that pays interest on investments…

Fiat money is a currency established as money, often by government regulation, but that has no intrinsic value. It is inconvertible paper money made legal…

A cryptocurrency is a form of payment that can be exchanged online for goods and services. It is a digital currency in which encryption techniques…

Negative interest rates occur when borrowers are credited interest rather than paying interest to lenders. Under a negative rate policy, financial institutions are required to…

Interest rate risk is the potential for investment losses that result from a change in interest rates. It is the probability of a decline in…

MIRR – The modified internal rate of return (commonly denoted as MIRR) is a financial measure of an investment’s attractiveness. It is used in capital…

The modified internal rate of return (commonly denoted as MIRR) assumes that positive cash flows are reinvested at the firm’s cost of capital and that…

Stranded costs are costs that were previously absorbed by the divested business but remain with the parent company following separation. In discussions of electric power generation…