What Are Flotation Costs in Finance? Flotation costs are non-recurring expenses that are paid to third parties to facilitate the issuance of new securities in the market. Flotation costs are incurred by publicly-traded companies when they issue new stock. They incur expenses, such as underwriting fees, legal fees, and registration […]
Trading Basics
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What is Time In Force in Stock & Options Trading? Time in force is a special instruction used when placing a stock or options trade. It specifies how long an order will remain active before it is executed or expires. These instructions are especially important for active traders and allow […]
What is a Reverse Merger? A reverse merger occurs when a smaller private company becomes a public company by purchasing control of a larger public company. The shareholders of the private company usually receive large amounts of ownership in the public company and control of its board of directors. Once […]
What Is The Free Enterprise System? A free enterprise system is an economic system where the government places very few restrictions on the types of business activities or ownership in which citizens participate. This type of system is often referred to as a free market or capitalism. In a free enterprise system, individuals […]
What Is Interest Rate Parity (IRP)? Interest rate parity (IRP) is the fundamental equation that governs the relationship between interest rates and currency exchange rates. Interest rate parity (IRP) plays an essential role in foreign exchange markets. It connects interest rates with spot exchange rates and foreign exchange rates. According […]
What is a Natural Gas ETF? Natural gas is a commodity used as a source of energy for heating, cooking, fuel, and electricity generation. It also is used in the manufacture of plastics and other organic chemicals. The price of natural gas rises and falls according to fluctuations in supply […]