The CAMELS Rating System: How It Is Calculated.

What is the CAMELS Rating System? The CAMELS Rating System is a method of assessing the safety and soundness of banks and other financial institutions. The acronym stands for Capital, Asset quality, Management, Earnings, Liquidity, and Sensitivity to market risk. Each factor is assigned a weight, and the ratings are then calculated using a formula. … Read more

Principal Orders.

Principal orders are those that are placed by the broker on behalf of the client. In other words, the client instructs the broker to buy or sell a security at a certain price, and the broker then places the order with a market maker or another broker. Who are principal trading firms? A principal trading … Read more

What is a Giffen good?

When we speak of a good Giffen, we are referring to the good whose demand increases when the price of the good increases. This behavior is exactly the opposite of what happens in normal goods, not complying with the law of demand. La demand law indicates that the higher the price of the good, the … Read more