Agency Cost
What is Agency Cost?Agency cost is the cost incurred because of conflict that arises between the shareholders and the managers of a company. These… Read Article
Economic Exposure
Meaning of Economic ExposureEconomic exposure, also known as operating exposure (a type of foreign exchange exposure), refers to an effect caused on a company’s… Read Article
Transaction Exposure
Meaning Of Transaction ExposureTransaction exposure is a type of foreign exchange (currency) exposure incurred due to the fluctuations in exchange rates before the contract… Read Article
Translation Exposure
Meaning of Translation ExposureTranslation exposure is a type of foreign exchange (currency) risk of change in the value of a company’s assets, equities, income,… Read Article
Euro Commercial Paper
Meaning of Euro Commercial PaperEuro Commercial Paper (ECP) is an unsecured, short-term debt instrument that is denominated in a currency differing from the domestic… Read Article
Foreign Exchange
Meaning of Foreign ExchangeForeign exchange, also termed Forex, refers to converting one country’s currency into another country’s currency. A single country’s currency is valued… Read Article
Purchasing Power Parity
Definition of Purchasing Power ParityPurchasing Power Parity (PPP) states that the currency of two countries is in equilibrium when the purchasing power in both… Read Article
International Banking
Meaning International banking is like any other banking service, but it takes place across different nations or internationally. To put it another way, it… Read Article
Straight Bill of Lading
To understand the term straight bill of lading, let us first understand the meaning of the bill of lading (BOL).Bill of LadingA bill of… Read Article
Unlevered Beta
Unlevered Beta DefinitionIt is a risk measurement metric that compares the risk of a company without any debt to the risk of the market.… Read Article
Beta Coefficient in Finance
Beta DefinitionBeta is a measure of volatility or risk of a stock in relation to market risk. Also known as the beta coefficient (β),… Read Article