Blog Category: Financial Terms
Get definitions and guidance on all the terms you need to know within accountancy and finance.
Sox Regulation with Example
The Sarbanes-Oxley Act of 2002 is a United States law designed to protect investors from corporate accounting fraud.
Quantile Function
The quantile function helps you figure out whether values in a distribution are above or below a specific threshold i...
Black-Scholes-Merton Model
Black-Scholes was the first widely used option pricing model, commonly known as Black-Scholes-Merton. Assumption bein...
Straddle and Strangle
Straddle and strangle are two hedging strategies that expect the stock prices to move significantly away from their c...
Credit Value Adjustment
The portion that accounts for counterparty risk is known as credit value adjustment. Prime objective of the trader is...
What is Multiple Regression?
A multiple regression analysis examines the relationship between many independent variables and one dependent variable.
What is Risk Control Self Assessment?
A risk control self-assessment (RCSA) requires the documentation of risks and provides a rating system and control id...
What is Option-Adjusted Spread?
There are different interest rates used for different transactions in the financial market. One popular rate is optio...
Loss Frequency and Loss Severity
The frequency of claims is the number of claims an insurer expects to occur over a period of time, while the severity...
External Credit Ratings
A credit rating is a measurement of a person or business' ability to repay a financial obligation based on income & p...
Clean and Dirty Price
Coupon bonds have a clean price before any interest is paid.
Fama & French Model
The Fama and French is asset pricing model that builds on the capital asset pricing model by adding size & risk eleme...