Your Gateway to Financial Literacy
Introduction to Agency Problem An agency problem exists when one party, the agent, is expected to act in another’s best interests – referred to as the principal – but instead may prioritize their own interests, leading to a conflict of interest. In the context of finance and investment, an agency
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Introduction to Agency Bonds Understanding the Complexity of Agency Bonds: An Overview An agency bond is a debt security issued by a government entity or a government-sponsored enterprise (GSE) that performs a public function, but isn’t directly part of the U.S. federal government. The role and nature of these bonds
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Introduction to Agency by Necessity Agency by necessity is a legal arrangement that empowers someone to take action for another person during emergencies or urgent situations when the beneficiary cannot explicitly grant authorization. This concept holds great significance in finance and investment, where it enables brokers or financial advisors to
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Understanding the Basics of the Advance/Decline Line (A/D Line) The advance-decline line (A/D line) is a vital technical indicator that displays the net difference between the number of advancing and declining stocks on a daily basis within an exchange or an index. It provides traders with valuable information about market
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Introduction to the Adjusted Closing Price Adjusted closing prices are essential for investors seeking accurate and complete information when analyzing historical stock performance. The adjusted closing price represents the final trade price of a stock after adjusting for any corporate actions, such as stock splits, dividends, or rights offerings. It’s
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Introduction to Adjusted EBITDA Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), commonly referred to as adjusted EBITDA, is an essential financial metric frequently used by institutional investors for valuation and performance analysis. This measure offers valuable insights into a company’s underlying profitability and cash-generating capabilities when compared to
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Introduction to Activist Investing Activist investing is a unique strategy employed by certain hedge funds, pension funds, mutual funds, and other institutional investors. Instead of passively holding stocks or focusing on short-term gains, these activist investors actively engage with companies to influence change in their management, business strategies, or corporate
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