What Is a Counterparty?

A counterparty is a financial institution or individual with which another financial institution or individual has a transaction. In derivatives trading, for example, each party to a trade is a counterparty. In the securities industry, a counterparty is typically a broker-dealer. In the credit markets, a counterparty is typically a bank. Are CFDs illegal in … Read more

Defining Third World Countries.

. What are third world countries? Is Saudi Arabia a 1st world country? No, Saudi Arabia is not a first world country. The concept of the first world is based on economic and political criteria, and Saudi Arabia does not meet either of these criteria. Saudi Arabia is classified as a developing country by the … Read more

Bond: Financial Meaning With Examples and How They Are Priced.

Bond: Financial Meaning and Pricing Examples. What is long-term bond? A long-term bond is a debt instrument with a maturity of more than 10 years. Long-term bonds are typically issued by governments and corporations to raise capital for projects with long-term horizons, such as infrastructure development. Long-term bonds typically offer higher yields than shorter-term debt … Read more

What Is an Agent?

Definition, Types of Agents, and Examples. What is an agent? An agent is a person who is authorized to act on behalf of another person or organization. There are different types of agents, including real estate agents, insurance agents, and literary agents. Examples of agents include brokers, salespeople, and representatives. Who is an agent in … Read more

Economy: What It Is, Types of Economies, Economic Indicators.

Economy: What It Is, Types, Indicators What are the 5 economic indicators? 1. Gross domestic product (GDP) 2. Gross national product (GNP) 3. Net national product (NNP) 4. Per capita income 5. Employment What are the 4 levels of inflation? The four levels of inflation are as follows: 1. Cost-push inflation: This occurs when the … Read more

What Is Prima Facie?

The term “prima facie” is a Latin term meaning “on its face” or “at first glance”. In the legal world, it is used to describe a situation where the evidence appears to be sufficient to support a conclusion, but where further investigation may be necessary to confirm the validity of the evidence. Can I work … Read more

How Is Wealth Measured?

How is wealth measured? Wealth, or net worth, is the value of all assets minus the total of all liabilities. In other words, it is what is owned minus what is owed. For individuals, net worth always identifies the negative net worth of a household by subtracting total liabilities from total assets. Individual households have … Read more

Labor Union: Definition, History, and Examples.

Labor Union: What It Is, Its History, and Examples What was the first labor union? The first labor union in the United States was the Philadelphia Carpenters’ Company, established in 1724. The union was formed in response to a wage dispute between the carpenters and their employers. The carpenters went on strike and demanded a … Read more