Commercial Balance

Commercial Balance

Commercial Balance also known as the balance of trade is a trade surplus is an economic measure of a positive balance of trade, where a…
Moneyness

Moneyness

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)

Out Of The Money (OTM)

“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…
Calculation of Internal Rate of Return (IRR)

Calculation of Internal Rate of Return (IRR)

The internal rate of return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments. Calculating IRR cannot be calculated…
Cash-Flow Matching

Cash-Flow Matching

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.,…
Intrinsic Value

Intrinsic Value

In finance, Intrinsic Value or fundamental value is a measure of what an asset is worth. This measure is arrived at by means of an…
Jettison

Jettison

Jettison means to push to the side or toss away. It is an act of throwing a part of the goods or anything from the…
Discounted Cash Flow (DCF)

Discounted Cash Flow (DCF)

In finance, discounted cash flow (DCF) is a valuation method used to estimate the value of an investment based on its future cash flows. DCF…
Balance of Payments

Balance of Payments

The balance of payments (BOP) is a record of all monetary transactions between a country and the rest of the world. It is a record…
Itinerant Trade

Itinerant Trade

Itinerant Trade Itinerant means traveling from place to place. It is a form of a retail organization in which the seller has no fixed shop…
Currency Transaction Tax in Finance

Currency Transaction Tax in Finance

The Currency Transaction Tax (CTT) is a proposed worldwide tax on all currency traded across national borders. A currency transaction tax is a tax placed…
International Company

International Company

International Company An international company is a domestic firm that uses its existing capabilities to penetrate overseas markets. It is an organization that has business…
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