Blog Posts

The way money creation works in an economy and how the commercial banking system operates is broadly misunderstood. The way that it’s commonly taught in introductory economics textbooks is that a commercial bank takes in other people’s money (i.e., deposits) and then lends out this money in the form of loans. For non-bank financial institutions, […]

What Is a Joint Venture (JV)? A Joint Venture is a strategic alliance between two or more parties to undertake a specific project or business venture. The parties agree to create a new entity for the purpose of this venture and share resources, risks, rewards, and control over the enterprise.   Why Use Joint Ventures? […]

What Are Profitability Ratios? Profitability ratios compare a company’s earnings to other financial metrics such as its revenue, operating income, or assets. In general, profitability ratios show how well a company generates profits from its business activities. There are many different types of profitability ratios, but some of the most common include the gross margin […]

What Is The Quantity Theory of Money? The quantity theory of money is a simple economic theory that states that the price of goods and services is directly proportional to the amount of money in circulation. In other words, if the money supply increases, then prices will also increase. This theory is based on the […]

What Is the Empirical Rule? The empirical rule refers to the normal distribution and states that for data that is normally distributed, almost all of the data will fall within three standard deviations of the mean. In other words, if you take a normal distribution and plot it on a graph, almost all of the […]

What Is Preferred Stock? Preferred stock is a type of equity that typically pays fixed dividends and has priority over common stock in the event of a liquidation. Preferred shares generally have greater voting rights than common shares, but Common Stockholders elect the Board of Directors. Preferred Stock vs Common Stock – Key Differences Preferred […]

Stratified Random Sampling is a method of sampling that is used when dividing a population into sub-groups, or strata, is necessary. This technique is often used when there is a need to ensure that the sample accurately represents the characteristics of the entire population. To stratify a population, researchers first identify the key characteristics that […]

A board of directors is a group of people who, as elected or appointed representatives, oversee the activities of an organization or company. The board’s responsibilities include hiring and firing the organization’s CEO, establishing the organization’s overall strategy, and making decisions on how the organization will be run. Who Sits on the Board of Directors? […]

Merchant banking refers to the activities undertaken by banks to provide financing and other services to businesses. These activities include lending, underwriting, advisory services, and investment banking. What Are Merchant Banks? Merchant banks are typically large banks that have the resources and expertise to provide these services. Merchant banks play an important role in the […]

The last few months have demonstrated the risk of investing in an altcoin. The collapse of Luna, UST, and Celcius has shown us that even large altcoins, stablecoins and seemingly collateral-based altcoins can collapse at any time. This does not mean that you should avoid investing in altcoins. Altcoin trading can bring large profits, and […]