What Is a Fire Sale in Finance?

A fire sale is a sale of assets by a company in order to raise cash quickly. The assets are sold at a price below their market value, and the sale is usually motivated by an urgent need for cash, such as to pay off debts or refinance. A fire sale can also refer to … Read more

What Is Portfolio Insurance?

Portfolio insurance is a type of financial protection that can be used by investors to safeguard their portfolios against potential losses. It is most commonly used by institutional investors and high-net-worth individuals. Portfolio insurance works by using derivatives contracts to create a “synthetic” portfolio that is designed to mimic the performance of the underlying portfolio. … Read more

What is the raw material?

The concept of raw material refers to any good whose purpose is transformation during a production process to become a consumer item. Many of the material goods require modification or transformation before they can be used by users. In this case, the raw materials occupy the first step in a manufacturing chain, which will endure … Read more