Multistage Dividend Discount Model

What is the ‘Multistage Dividend Discount Model’ The multistage dividend discount model is an equity valuation model that builds on the Gordon growth model by applying varying growth rates to the calculation. Under the multistage…



Affirmative Covenant

What is an ‘Affirmative Covenant’ An affirmative covenant is a type of promise or contract that requires a party adhere to certain terms. For example, an affirmative bond covenant could provide that an issuer maintain…



Stop Hunting

Loading the player… DEFINITION of ‘Stop Hunting’ Stop hunting is a strategy that attempts to force some market participants out of their positions by driving the price of an asset to a level where many…


The Forex Market: Who Trades Currency And Why

The foreign exchange market (or forex market) is the largest financial market in the world. In fact, the market for currencies is several times larger than the stock market. TUTORIAL: Forex Tutorial: The Forex Market…


China vs Hong Kong stock: Is H-shares and A-shares the same?

Publicly-traded companies in China generally fall under three share categories: A-shares, B-shares and H-shares. A-shares represent publicly listed Chinese companies that trade on Chinese stock exchanges, such as the Shenzhen and Shanghai Stock Exchanges. Public…


Breakup Value

DEFINITION of ‘Breakup Value’ The breakup value is the sum-of-parts value of a publicly traded company. Investors derive this value by analyzing each business segment of a company independently. Breakup value is usually applied to…


Foreign remittance

DEFINITION of ‘Foreign remittance’ A foreign remittance is a transfer of money from a foreign worker to their familiy or other individuals in their home countries. In many countries, remittance constitutes a significant portion of a…


130-30 Strategy

What is the ‘130-30 Strategy’ The 130-30 strategy is a strategy that uses financial leverage by shorting poor performing stocks and purchasing alternate shares that are expected to have high returns. A 130-30 ratio implies…