Blog Category: Financial Terms
Get definitions and guidance on all the terms you need to know within accountancy and finance.
Correspondent Banking
Respondent banks with no international presence can use cross-border correspondent connections to operate in jurisdic...
Independent Events
If the outcome of one event has no bearing on the likelihood of the other, they are considered independent events.
What is Adjusted R-Squared?
The adjusted R squared modifies the standard R squared to account for the degrees of freedom used when estimating mod...
What is Poisson Distribution?
Poisson random variables are used to measure counts of events.
Unraveling the Total Return Swap in Financial Markets
Total Rate of Return Swaps exchange a reference asset's total return for a floating rate such as LIBOR plus a specifi...
Special Purpose Vehicle
A special purpose vehicle (SPV) is a subsidiary company that is formed to undertake a specific business purpose or ac...
What is Rogue Trading: A Introductory Guide
Rogue traders act recklessly and independently of others, often harming their employers and clients in the process.
Operational Risk
Operational risk is the risk of losses caused by flawed or failed processes, policies, systems or events that disrupt...
What is Expense Ratio?
The expense Ratio is the ratio of expenses to premiums generated. Using it, companies can determine their efficiency.
What is Simulation Modelling
The purpose of simulation is to discover and comprehend the variables that control an existing or prospective system.