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End-of-Year Convention: Understanding Cash Flow Timing
Stock Market

End-of-Year Convention: Understanding Cash Flow Timing

Highlights,End-of-year convention treats cash flows as if they occur at the year's end.,Time 0 represents the present, with future periods marked by year-end.,The convention simplifies financial analysis and decision-making over time.,The end-of-year conv...

Understanding Open on the Print in Block Trading
Stock Market

Understanding Open on the Print in Block Trading

Highlights:,Definition of Open on the Print:,The term refers to a situation in block trading where a large trade has been completed and reported on the,consolidated,tape, but the block trader still holds a position, either long or short, to,facilitate,fut...

Empty Head and Pure Heart Test: A Securities and Exchange Commission Rule
Stock Market

Empty Head and Pure Heart Test: A Securities and Exchange Commission Rule

Highlights:,The rule restricts trading in stock to the bidder during a tender offer if they possess inside information.,It ensures fairness by preventing market manipulation through insider knowledge.,The SEC enforces the test to protect investors and mai...

Employee Stock Ownership Plan (ESOP)
Stock Market

Employee Stock Ownership Plan (ESOP)

Highlights:,ESOPs allow employees to acquire company stock through a trust fund.,They serve as a retirement benefit and a tool for employee motivation.,ESOPs align employees' interests with the company’s long-term success.,An Employee Stock Ownership Plan...

Understanding Emerging Markets Funds: High Risk, High Reward
Stock Market

Understanding Emerging Markets Funds: High Risk, High Reward

Highlights,Emerging markets funds focus on countries with developing economies.,They are more volatile due to currency fluctuations and political instability.,These funds offer high growth potential but with greater risk.,An emerging markets fund is a typ...

The Emergency Home Finance Act of 1970: A Landmark in Housing Finance
Stock Market

The Emergency Home Finance Act of 1970: A Landmark in Housing Finance

Highlights:,The Emergency Home Finance Act of 1970 created the Federal Home Loan Mortgage Corporation.,The Act aimed to stimulate the secondary mortgage market and expand mortgage,It particularly focused on making mortgages available to veterans and other...

Eligible Bankers' Acceptances: A Comprehensive Overview
Stock Market

Eligible Bankers' Acceptances: A Comprehensive Overview

Highlights:,Eligible bankers' acceptances are those accepted by the Federal Reserve as collateral.,These acceptances can be sold without triggering reserve requirements for the accepting bank.,They play a vital role in the liquidity and functioning of fin...

Electronic Funds Transfer Systems: Revolutionizing Money Transfers
Stock Market

Electronic Funds Transfer Systems: Revolutionizing Money Transfers

Highlights:,Electronic funds transfer (EFT) allows for digital transfer of money instead of checks.,Key systems include Fedwire, ACHs, and other automated platforms.,EFT enhances speed, efficiency, and security in financial transactions.,Electronic Funds ...

Election Period: Key Insights and Significance
Stock Market

Election Period: Key Insights and Significance

Highlights:,The election period allows bondholders to decide on extending or retracting a bond.,It applies to extendible or retractable bonds, offering flexibility to investors.,This period plays a key role in managing investment risk and strategy.,The el...

Understanding Elasticity of an Option: A Detailed Overview
Stock Market

Understanding Elasticity of an Option: A Detailed Overview

Highlights,Elasticity of an option measures the percentage change in the option's value relative to the underlying stock.,It quantifies how sensitive an option is to price changes in the stock.,Elasticity is closely related to delta, another key option pr...