Tag: house

Small Cap definition explanation

What is Small Cap?
Refers to stocks with a relatively small market capitalization. The definition of small cap can vary among brokerages, but generally it is a company with a market capitalization of between $300 million and $2 billion. Read more for examples and further explanation including related video clips and also comments
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Pension Fund definition explanation

What is Pension Fund?
A fund established by an employer to facilitate and organize the investment of employees’ retirement funds contributed by the employer and employees. The pension fund is a common asset pool meant to generate stable growth over the long term, and provide pensions for employees when they reach the end of their working years and commence retirement. Read more for examples and further explanation including related video clips and also comments
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Central Counterparty Clearing House – CCP definition explanation

What is Central Counterparty Clearing House – CCP?
An organization that exists in various European countries that helps facilitate trading done in European derivatives and equities markets. These clearing houses are often operated by the major banks in the country. The house’s prime responsibility is to provide efficiency and stability to the financial markets that they operate in. Read more for examples and further explanation including related video clips and also comments
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International Clearing System definition explanation

What is International Clearing System?
A trading system used when a futures contract transaction is entered on an international level. It is designed to promote world trade and market efficiency. Most international clearing transactions are administered by an international clearing house. Read more for examples and further explanation including related video clips and also comments
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Soft Market definition explanation

What is Soft Market?
A market that has more potential sellers than buyers. A soft market can describe an entire industry, such as the retail market, or a specific asset, such as lumber. This is often referred to as a buyer’s market, as the purchasers hold much of the power in negotiations. Read more for examples and further explanation including related video clips and also comments
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Fiscal Imbalance definition explanation

What is Fiscal Imbalance?
A situation where all of the future debt obligations of a government are different from the future income streams. Both of the obligations and the income streams are measured at their respective present values, and will be discounted at the risk free rate plus a certain spread.

A vertical fiscal imbalance describes a situation where revenues do not match expenditures for different levels of government. A horizontal imbalance describes a situation where revenues do not match expenditures for different regions of the country. Read more for examples and further explanation including related video clips and also comments
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Froth definition explanation

What is Froth?
Market conditions preceding an actual market bubble where asset prices become detached from their underlying intrinsic values as demand for those assets drives their prices to unsustainable levels. Market froth marks the beginning of unsustainable rates of asset price inflation. Read more for examples and further explanation including related video clips and also comments
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