Xetra is an all-electronic trading system, based in Frankfurt, Germany. Launched in 1997 and operated by the Deutsche Börse, the Xetra platform offers increased flexibility for seeing order depth within the markets and offers trading in stocks, funds, bonds, warrants and commodities contracts.
Managerial accounting is the practice of identifying, measuring, analyzing, interpreting, and communicating financial information to managers for the pursuit of an organization’s goals. It varies from financial accounting because the intended purpose of managerial accounting is to assist users internal to the company in making well-informed business decisions.
An equity fund is a mutual fund that invests principally in stocks. It can be actively or passively (index fund) managed. Equity funds are also known as stock funds.
Nacha is the steward of the electronic system that connects all U.S. bank accounts and facilitates the movement of money among them. The organization says that more than $51 trillion moved through its Automated Clearing House (ACH) Network in 2018.
Demographics is the study of a population based on factors such as age, race, and sex. Demographic data refers to socio-economic information expressed statistically, also including employment, education, income, marriage rates, birth and death rates and more factors. Governments, corporations, and nongovernment organizations use demographics to learn more about a population’s characteristics for many purposes, including policy development and economic market research.
Family offices are private wealth management advisory firms that serve ultra-high-net-worth (UHNW) investors. They are different from traditional wealth management shops in that they offer a total outsourced solution to managing the financial and investment side of an affluent individual or family. For example, many family offices offer budgeting, insurance, charitable giving, family-owned businesses, wealth transfer, and tax services.
A two-way ANOVA test is a statistical test used to determine the effect of two nominal predictor variables on a continuous outcome variable. ANOVA stands for analysis of variance and tests for differences in the effects of independent variables on a dependent variable.
The labor theory of value (LTV) was an early attempt by economists to explain why goods were exchanged for certain relative prices on the market. It suggested that the value of a commodity was determined by and could be measured objectively by the average number of labor hours necessary to produce it. In the labor theory of value, the amount of labor that goes into producing an economic good is the source of that good’s value. The best-known advocates of the labor theory were Adam Smith, David Ricardo, and Karl Marx. Since the 19th century, the labor theory of value has fallen out of favor among most mainstream economists.
Locking in profits refers to the realization of previously unrealized gains accrued in a security by closing all or a portion of the holdings. When an investor holds an open position, they may accrue unrealized or paper gains or losses that aren’t realized until the position is closed. An example is when an investor that’s long a security can lock in profits by selling their stake for a gain. By doing this they are no longer subject to changes in the underlying.
A realized loss is the loss that is recognized when assets are sold for a price lower than the original purchase price. Realized loss occurs when an asset that was purchased at a level referred to as cost or book value is then disbursed for a value below its book value.