Finance

Solvency is the ability of a company to meet its long-term debts and financial obligations. It can also be described as the ability of a…

In finance or business, Solvency is the ability of a company to meet its long-term financial obligations. It is the degree to which the current…

A put option is a contract that gives an investor the right, but not the obligation, to sell shares of an underlying security at a…

Financial Distress is a situation when a company is struggling to generate enough profits to meet its financial obligations. There could be various reasons for…

The most widely-accepted theory on the origin of the word “bankruptcy” comes from a mixing of the ancient Latin words bancus (bench or table) and…

Joint Stock Company It is an association of persons united for the purpose of carrying on a business whose capital is formed of shares. It…

The Net Present Value (NPV) is a means of evaluating the actual long-term profitability of an investment or a project through the initial outflow, future…

In finance, the strike price (or exercise price) is the set price at which a derivative contract can be bought or sold when it is…

The term moneyness is most commonly used with put and call options and is an indicator as to whether the option would make money if…

The definition of moneyness is simple; it’s the relationship between the strike price of an options contract and the price of the underlying security.  There…

“Out of the money” (OTM) is one of three terms used in options trading, referring to an underlying asset’s price in relation to the price…

Cash flow matching also called dedicating a portfolio, is a process of hedging in which a company or other entity matches its cash outflows (i.e.,…