An Inflation Derivative is a subclass of derivative that is used by individuals to mitigate the effects of potentially large levels of inflation. Swaps are the most common types of inflation derivatives, in which a counterparty’s cash flows are linked to a price index and the other counterparty is linked to a conventional fixed or floating cash flow. In finance, inflation … [Read more...]
Role of Inflation in Stock Market
INFLATION's EFFECT ON STOCK MARKET: Understanding inflation is crucial to investing because inflation can reduce the value of investment returns. Inflation affects all aspects of the economy, from consumer spending, business investment, and employment rates, to government programs, tax policies, and interest rates. It is because of the inflation that share market has … [Read more...]
Inflation: What Is It And Why Does It Happen?
Inflation: What Is It And Why Does It Happen? "Inflation is the overall or specific increase in the cost of a good or service." Inflation is when your mom or dad complains about the prices they have to pay nowadays compared to what they paid when they were a younger. "I remember when a candy bar only cost a nickel." "I used to buy gas at that station for 15¢ a gallon." … [Read more...]
basic terms on investment
Havala or Hawala (also, Making Up Price) it is the rate fixed by the stock exchange for the purpose of working out the liabilities between the members and brokers at the end of the SETTLEMENT PERIOD in respect of unfulfilled contracts in specified securities which are to be carried over to the subsequent period. If members were to try and individually settle all carry over … [Read more...]