Your Gateway to Financial Literacy
Origins of ZZZZ Best Barry Minkow, the man behind ZZZZ Best, began his entrepreneurial journey in the 1980s with a struggling carpet cleaning business. Based in his parents’ garage and plagued by customer complaints and supplier collection requests, young Minkow was determined to create an illusion of profitability for his
Read more
Introduction to Z Tranches A Z tranche represents the lowest-ranked piece of a collateralized mortgage obligation (CMO) in terms of seniority. Unlike other tranches, it doesn’t receive any coupon payments until all other senior tranches have been retired or paid off. Instead, the funds intended for interest payments are used
Read more
Introduction to Z-Scores in Finance and Investing Z-scores play an essential role in finance and investing as they measure a value’s relationship to the mean of a specific dataset. The z-score, determined by subtracting the mean from the data point and dividing it by the standard deviation, reveals how far
Read more
What Is Zoning? Zoning is a local regulation that governs how real property can be used in specific areas. This legislation outlines the permitted use of land for residential, commercial, agricultural, industrial, or hotel/hospitality purposes, among others. The concept of zoning emerged to ensure orderly growth and development within municipalities
Read more
What is a Zoning Ordinance? A zoning ordinance refers to a set of rules and regulations that govern how land within a defined geographic area can be used. These laws primarily dictate the types of structures, businesses, or activities allowed in specific zones such as industrial, residential, commercial, or agricultural
Read more
Introduction to ZOPA: What is a Zone of Possible Agreement? The term “Zone of Possible Agreement,” or “ZOPA,” refers to the area in negotiations where both parties may potentially find common ground, eventually leading to a mutually agreeable settlement. This concept signifies a vital intersection for negotiations – where the
Read more
Definition of a Zone of Support A zone of support is an essential concept in technical analysis, signifying a lower boundary that marks a price level where a security has not yet been breached. This level represents a significant area for traders to closely watch and consider entering or exiting
Read more
Definition and Importance of the Zone of Resistance The term “zone of resistance” refers to the price area where a security encounters a significant barrier to further upward movement, acting as a ceiling for its short-term gains. In contrast, its counterpart, the zone of support, represents the price level that
Read more
Introduction to Zomma: An Abstract Concept in Derivatives In the realm of derivatives trading, zomma, also known as D-gamma or the gamma of gamma, is a third-order derivative risk measure that evaluates a contract’s sensitivity to changes in implied volatility. This risk measure plays an essential role for investors and
Read more
Introduction to Zombies: Definition and Historical Context Zombie companies, also known as the ‘living dead’ or ‘zombie stocks,’ refer to firms that barely earn enough revenue to keep operating while servicing their debt but lack the financial resources for growth. These firms represent a high-risk investment category due to their
Read more
Introduction to Zombie Titles A zombie title is a real estate term used when a homeowner mistakenly believes they have lost their property to foreclosure, but the title remains with them. This occurs when a lender unexpectedly dismisses a foreclosure lawsuit without informing the homeowner. The misconception arises due to
Read more
What is a Zombie Foreclosure? A zombie foreclosure is an intriguing concept that arises when a homeowner misunderstands their obligations during the foreclosure process, leading to abandonment of their property before legally required. In this scenario, despite vacating their dwelling upon receiving a foreclosure notice, homeowners remain liable for ongoing
Read more
Overview of Zombie ETFs A zombie Exchange-Traded Fund (ETF) signifies an ETF that has lost its luster and appeal among new investors. These funds, often referred to as “zombies,” are no longer growing and generating substantial revenue for the asset management company that sponsors them. When an ETF enters this
Read more
Introduction to Zombie Debt In the world of finance, few topics are as intriguing and confusing as zombie debt. This financial phenomenon refers to debts that have long been considered dead but miraculously resurface, causing a stir in the lives of unsuspecting individuals. Unlike traditional debt, which is still being
Read more
Introduction to Zombie Banks A zombie bank is a financial institution that continues operating despite being insolvent due to government intervention. The term was coined by Edward Kane during the Savings & Loans (S&L) crisis of 1987 when insolvent savings and loans institutions were kept from bankruptcy. Zombie banks are
Read more
What is zk-SNARK? Zk-SNARK (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge) is a revolutionary proof system that enables one party to prove possession of specific information without revealing the data itself. First introduced in the late 1980s, this zero-knowledge proof concept was brought back to life by Zcash, a privacy-focused cryptocurrency
Read more
Understanding the Basics of the Zig Zag Indicator The Zig Zag indicator is an essential technical analysis tool that helps traders identify trends and filter out random price fluctuations, also known as ‘noise.’ The primary function of this indicator is to enhance the visibility of underlying trends by lowering noise
Read more
What is the ZEW Indicator of Economic Sentiment? The ZEW Indicator of Economic Sentiment is a renowned sentiment indicator that gauges the economic outlook for Germany based on the opinions of approximately 350 German and European experts, including economists, analysts, and financial professionals. Developed by the Center for European Economic
Read more
Introduction to the Zeta Model The Zeta Model is a powerful financial prediction tool used in assessing the potential bankruptcy risk of corporations. Developed by Edward I. Altman, a professor of finance at New York University, in 1968, this model has proven valuable for investors and analysts seeking insight into
Read more
Introduction to Zero Upticks A zero uptick, a term frequently used in the context of stock trading, refers to a specific type of trade where the price remains unchanged or even decreases slightly after two consecutive trades at the same price but with opposite directions. This concept carries significant importance
Read more
Introduction and Background of Zero Capital Gains Rates A zero capital gains rate is a significant tax advantage that has become an essential tool for economic development initiatives worldwide. It refers to a tax rate of 0% on capital gains—the increase in value of an asset from the initial purchase
Read more