Alternative investments offer a unique opportunity to diversify your portfolio and potentially earn higher returns than traditional stocks and bonds. However, understanding these investments can be challenging for those new to the world of personal
Investment Options
Comprehensive Guide to Derivatives: A Beginner’s Guide
Derivatives are financial instruments that can be both exciting and intimidating. They offer the potential for high returns, but they also come with significant risks. If you're new to investing, understanding derivatives is crucial. This guide will
Contracts in the Financial Markets: Forwards, Futures, Swaps and Options
What's it: A contract is a legally enforceable agreement between two or more parties. A contract establishes a relationship between the parties who agree to do or refrain from doing some act now or in the future. A contract may also specify how
How Can We Say Financial Markets Are Vital? What are the Types?
Advanced financial markets are the foundation for economic growth. When functioning effectively, it enables the economy to efficiently maximize financial capital to its best use.A financial market is where companies raise money for their capital
Financial Markets: Functions, How They Work, and Infrastructure
In financial markets, buyers and sellers trade financial assets or securities. Examples are the capital market and the money market. The futures, derivatives, commodities, and foreign exchange markets are other examples.For example, the money
How the Financial System Plays a Vital Role in the Economy
You deal with the financial system when you borrow from a bank or invest in stocks or bonds. The system facilitates you, the saver, with the users of the funds.Fund users - or fund spenders - may be individuals. For example, your friend applied
How Many Parts Are There in the Financial System and How They Work
The financial system involves financial institutions such as banks and insurance. Other elements are financial instruments, financial markets, and central banks. In addition, it also requires a regulatory body.Do you know the stock exchange? It
What Are the 3 Stages of Venture Capital Financing?
The venture capital financing stage includes: formative stage financing, later stage financing, and mezzanine-stage financing. The three differ based on at which stage the capital is injected into the startup.For example, formative stage
Private Equity Structure and Fee
Private equity is usually structured as a Limited Partnership (LP) or Limited Liability Company (LLC). Under a limited partnership, there are two groups: limited and general partners. Limited partners commit to capital to be invested by the
Hedge Funds Strategy: Macro, event-driven, relative value, and equity hedge strategies
Hedge funds rely on several strategies to make money. Hedge Fund Research, Inc. (HFRI) divides them into four categories:Before exploring hedge fund strategies, first of all, what is a hedge fund?It is an investment vehicle by
Leveraged Buyout (LBO): How it Works, Funding Sources, Criteria for Target
What's it: A leveraged buyout (LBO) is an acquisition with debt relied upon to finance the purchase. This strategy is usually adopted by private equity firms. They buy companies hoping to profit without relying too much on internal capital.
Private Equity: Examples, Strategies, Targets, Its Ways To Make Money
What's it: Private equity is an investment vehicle focused on buying shares of prospective private companies to gain control over management and other operational changes to increase profitability. Thus, the target company can be sold profitably