Hedge Managing risks is one of the primary functions of finance. Risk management as a function is based on reducing the financial risks arising out of adverse price movements. If you have invested in a stock, the fall in stock price is an adverse event, and it can impact your portfolio. Hedging is used to […]

Definition: A futures contract is a contract between two parties where both parties agree to buy and sell a particular asset of specific quantity and at a predetermined price, at a specified date in future. Description: The payment and delivery of the asset is made on the future date termed as delivery date. The buyer […]

Definition: Dividend refers to a reward, cash or otherwise, that a company gives to its shareholders. Dividends can be issued in various forms, such as cash payment, stocks or any other form. A company’s dividend is decided by its board of directors and it requires the shareholders’ approval. However, it is not obligatory for a […]

Definition: Arbitrage is the process of simultaneous buying and selling of an asset from different platforms, exchanges or locations to cash in on the price difference (usually small in percentage terms). While getting into an arbitrage trade, the quantity of the underlying asset bought and sold should be the same. Only the price difference is […]

Definition: Beta is a numeric value that measures the fluctuations of a stock to changes in the overall stock market. Description: Beta measures the responsiveness of a stock's price to changes in the overall stock market. On comparison of the benchmark index for e.g. FTSE 100 to a particular stock returns, a pattern develops that […]

Definition: Alpha is an estimated numeric value of a stock's expected excess return that cannot be attributed to the market's volatility, but may be due to some other security. Description: In other words, it is the difference between the investment return and the bench mark return (for e.g. S&P 500). It is one out of the five […]

The SEC is Zambia’s main capital markets regulator. Its main function is market supervision, and in this regard it is responsible for the following key functions: There are a number of benefits of regulating and supervising the capital markets. These include the following: The licensing process aims to ensure that only fit and proper organizations […]

As a Briton living and working abroard, it's important for you to have arrangements in place to protect your family. Taking out life insurance is one part of the planning process. You will also want to ensure that you are able to pass on your assets to your chosen beneficiaries according to your wishes and […]

Estate Planning involves setting up a plan that establishes who will eventually receive your assets. It also makes known how you want your affairs to be handled in the event you are unable to handle them on your own for any reason. It’s a complicated process, and it can definitely feel overwhelming. There are many components […]