Category Archives: portfolio management

Economic Growth Rate

Economic Growth Rate Economic growth Rate describes an increase in the quantity and quality of the economic goods and services that a society produces and consumes. From the long-term perspective of social history, we know that economic prosperity and lasting economic growth is very recent achievement for humanity. In this entry, we will also look…

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Effective Gross Income

Effective Gross Income What is Effective Gross Income (EGI)? There’s big money-making potential with an investment rental property. However, determining how much you’ll actually make isn’t as simple as multiplying the monthly rent by 12. To understand your true cash flow, you’ll need to keep an eye on your effective gross income (EGI) about your net…

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Diluted EPS

Diluted EPS The Diluted EPS formula is equal to Net Income less preferred dividends, divided by the total number of diluted shares outstanding (basic shares outstanding plus the exercise of in-the-money options, warrants, and other dilutive securities). Also, the concept of diluted shares outstanding can be equated to a pie, of sorts. If more slices are…

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Basic Earnings Per Share (EPS)

Basic Earnings Per Share (EPS) Earnings per share (EPS) is a key metric that determines the common shareholder’s portion of the company’s profit. EPS measures each common share’s profit allocation about the company’s total profit. IFRS uses the term “ordinary shares” to refer to common shares. The EPS figure is important because it is used…

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Hedge Fund

Hedge Fund Hedge funds limit their participants to accredited investors. An accredited investor is defined as someone with a liquid net worth greater than $1 million or an annual net income greater than $200,000 (or $300,000 with a spouse). The SEC allows accredited investors to invest in less-regulated securities offerings because it assumes investors with…

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Mutual Fund

Mutual Fund A mutual fund is a fund that pools money from a group of investors to buy financial securities such as bonds and stocks to minimise costs, diversify investment risks, and maximise returns. Investors in funds don’t directly own the securities in the fund but hold shares in the fund. Understanding Mutual Funds Mutual…

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Forward market

Forward market How forward market works A forward market leads to the creation of forwarding contracts. While forward contracts—like futures contracts—may be used for both hedging and speculation, there are some notable differences between the two. Forward contracts can be customized to fit a customer’s requirements, while futures contracts have standardized features in terms of their contract size and maturity. Forwards execute…

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Spot market

Spot market A spot market is where financial instruments are exchanged for immediate delivery, such as commodities, currencies, and securities. Delivery, here, means cash exchange for a financial tool. In comparison, a futures contract is based on the delivery of the underlying asset at a future date. Over-the-counter (OTC) markets and exchanges may provide spot trading and/or futures trading. How Spot Markets Work Spot markets are also referred…

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