Category Investing Theory

Criteria for an Autonomy of the Typical Central Bank

What are the Criteria for an Autonomy of the Typical Central Bank?

1. Functionality of institution – the institution must be so organized and administer of such instruments to be able to perform their own tasks, and therefore have the aspects of:
– The internal organization of the institution,
– The status of links with external institutions (mainly the government), the instruments of monetary policy.
2. Financial independence – to what extent government expenses are implemented by the central bank. The direct influence of the government on the central bank imposes automaticity of financing government expenses.
3. Independence of the authorities – in what way, by whom, and for how long central bank authorities are selected. In addition, can members of the bank be removed?

The authorities o...

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What are the Types of Insurance Policies?

What are the types of insurance policies? Here is a list of the different types of most often concluded insurances with a brief description.

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How to read Indexes on the Stock Market?

How can you read Indexes at the Stock Market? The increase of the index value compared to its value in the previous trading session indicates a positive trend. This implies development and prosperity. When there is a decrease, the interpretation is reversed. Indicators should also be analyzed for longer time intervals, in order to get rid of the influence of random fluctuations. This way you can simply interpret the indexes.
Apart from the already mentioned, in previous article, three indexes, Dow-Jones, there is a fourth one – a collective. It is the Dow-Jones Composite Index (DJCI so called Sixty-Five Stocks). This indicator is calculated based on the previous ones, and is based on 65 shares (20 + 30 + 15)...

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What are the Exchange Rate Tables?

Informations on stock exchange transactions are reported to the public. Such data is widely available, for example in the press and on the Internet. Some portals publish some detail data on the development of the stock exchange in terms of both current and (for better orientation) with regard to a previous period. Information about the rates are distributed in different forms which depends on the country. Regardless of the country a table must contain certain essential information, such as securities rate, fluctuation of the exchange rate in a period of time, volatility in the session, the estimated and actual asset’s income...

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What is a Stock Exchange?

What is a Stock Exchange and how does it work? The stock market is an essential part of the secondary capital market. Stock exchange is an organized market on which authorized entities carry out the transactions of purchase and sale of securities. The stock market is a market with a very high degree of formalization. Specified precisely is in fact the market itself, a market participant, the object of the transaction (security), price (exchange) transactions and, finally, the manner of its conclusion. Taking this into account, one can recognize the essence of the stock exchange as follows:
Stock Exchange is an institutionalized form of the capital market, where certain entities are transacting with a specific value in a particular mode...

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Money Market and Capital Market differences

What are the differences between Money Market and Capital Market? In financial markets transactions are combined with the capital. The market is an abstract concept here. This means, in principle, the process of sale and purchase of capital for expense – remuneration, which is a percentage. Anyone can be a participant of the financial market: the government, the company, a bank, or an individual. The condition for admission to the market is either adequate capital, which can be rented, or security – guarantee, on which you can take the capital, use it and pay percent on this account. Common are various types of divisions and definitions of financial markets...

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What is OTC market?

What OTC market means? At the capital market of securities there are being made transactions of medium and long term capitals. With some simplification it can be assumed that this type of capital is essentially financing medium-and long-term investments.
Capital market instruments of the securities market are mainly bonds and equities: long-term and medium-term securities.
The capital market therefore consists of two main segments :
– The stock market,
– The bond market.
As mentioned, the capital market is divided into primary and secondary. The primary market includes the issuance, which is the first sales of values ​​to the first investors. Secondary market, due to the mode of the transaction, can be divided very simply into two parts. This division looks as follows:
– The first segm...

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Primary and Secondary Markets Difference

What are the Primary and Secondary Market difference? Securities market is divided into: financial and capital markets. There is also a division here in a different plane, depending on whether the transaction of value is carried out for the first time or not. If the transaction with a security is performed for the first time, it happens in the primary market. If the transaction with a security is made once again, it happens on the secondary market. Both the capital market and the money market have their markets: primary and secondary. The primary market is the market on which the issuer or his securities broker invest and investors are purchasing them. So cecurity entered the market and it was sold for the first time. Then all happens on secondary market...

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