An Introduction to Accounts Receivable Financing
Investorline Accounts receivable financing or factoring, as it is called in the financial industry, can be combined with various other financing methods to help a business to accomplish an effective cash…
What do you understand by Cashflow matching & hedging?
Cashflow matching is a process of hedging in which a company or other entity matches its cash outflows (i.e. financial obligations) with its cash inflows. while A cash flow hedge…
Capital asset pricing model
In finance, the capital asset pricing model (CAPM) is used to determine a theoretically appropriate required rate of return of an asset, if that asset is to be added to…
Capital (economics)
In economics, capital, capital goods, or real capital refers to already-produced durable goods used in production of goods or services. The capital goods are not significantly consumed, though they may…
What is Value investing?
Value investing Value investing is an investment paradigm that derives from the ideas on investment and speculation that Ben Graham and David Dodd began teaching at Columbia Business School in…
Explaining No free lunch with vanishing risk
No free lunch with vanishing risk No free lunch with vanishing risk (NFLVR) is a no-arbitrage argument. We have free lunch with vanishing risk if by utilizing a sequence of…
What do you understand by Interest rate parity?
Interest rate parity is a no-arbitrage condition representing an equilibrium state under which investors will be indifferent to interest rates available on bank deposits in two countries. Two assumptions central…
What do you understand by Efficient-market hypothesis
In finance, the efficient-market hypothesis (EMH) asserts that financial markets are "informationally efficient". That is, one cannot consistently achieve returns in excess of average market returns on a risk-adjusted basis,…
What is Volatility arbitrage?
Volatility arbitrage In finance, volatility arbitrage (or vol arb) is a type of statistical arbitrage that is implemented by trading a delta neutral portfolio of an option and its underlier.…
What is Uncovered interest arbitrage
Uncovered interest arbitrage is a form of arbitrage where funds are transferred abroad to take advantage of higher interest in foreign monetary centers. It involves the conversion of the domestic…