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Q: please tell me what an "European monetary system" is
Category: glossary
, Asked by: Peyton I. From Luxembourg, Luxembourg
A: the "European monetary system " is EMS was the monetary system of the EU which attempted to reduce the currency variations between members. The EMS became operational on March 13th, 1979, as the successor to the'snake in a tunnel'. Its aim was to create a zone of monetary stability in Eur
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Q: please define an "equity premium puzzle"
Category: glossary
, Asked by: N. Poole from Dublin, Ireland
A: "equity premium puzzle " is An phenomenon that describes the anomalously higher historical real returns of stocks over government bonds. The equity premium, which is defined as equity returns less bond returns, has been about 6% on average for the past century. It is supposed to reflect the relative risk of stocks compared to "risk-free" government bonds, but the puzzle arises because this unexpectedly large percentage implies a suspiciously high level of risk aversion among investors.
The equity premium puzzle is a mystery to financial academics. According to some academics, the difference is too large to reflect a "proper" level of compensation that would occur as a result of investor risk aversion; therefore, the premium should actually be much lower than the historic average of 6%.
More recent extensions to the puzzle attempt to offer a different rationale for explaining the EPP, such as investor prospects and macroeconomic influences. No matter the explanation, the fact remains that investors are being rewarded very well for holding equity compared to government bonds.
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Q: do you know what a "gap" is?
Category: glossary
, Asked by: U. Burgess from San Antonio, United States
A: the "gap " is A break between prices on a chart that occurs when the price of a stock makes a sharp move up or down with no trading occurring in between. Gaps can be created by factors such as regular buying or selling pressure, earnings announcements, a change in an analyst's outlook or any other type of news release.
An example of two different gaps can be seen in the chart above. Notice how the stock closes the trading session before the first gap at $50 and opens the next trading day near $46 with no trading occurring between the two prices. Gaps are a regular occurrence in all financial markets. However, they are rarely seen in the forex market since it is highly liquid and trades 24 hours a day.
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Q: please define a "bonus issue"
Category: glossary
, Asked by: N. I. From Austria
A: An offer of free additional shares to existing shareholders. A company may decide to distribute further shares as an alternative to increasing the dividend payout.
Also known as a "scrip issue" or "capitalization issue".
New shares are issued to shareholders in proportion to their holdings. For example, the company may give one bonus share for every five shares held.
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Q: please define a "lease"
Category: glossary
, Asked by: O. Hardin from United States
A: the "lease " is A contract in which the legal owner of property or other asset agrees to another person using that property or asset in return for a regular specified payment (known as rent) over a set term. In addition to buildings, other items such as cars and computer
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Q: do you know what "direct taxation" is?
Category: glossary
, Asked by: Holden Z. From Livonia, United States
A: "direct taxation " is Taxes which are imposed directly on the individual paying them. Examples of direct taxation are income tax, capital gains tax and inheritance tax. They are in contrast to indirect taxes, such as VAT which is a tax on expenditure.
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Q: Will you give me an advice for a foreign exchange online trading site that's famous for its soothing mobile-friendly software?
Category: platform
, Asked by: Lindsay C. From Canada
A: If you're looking for a forex platform which gives a credible mobile connection, you must really check "GCI". Their graphics are real gorgeous and the environment is completely a realistic one. Their mobile friendly platform is growing to be an excellency standard in the field.
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Q: please tell me what the "open position" is
Category: glossary
, Asked by: Antoine D. From Waco, United States
A: An active trade with corresponding unrealized P&L, which has not been offset by an equal and opposite deal.
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Q: Which forex site has got most secure server connection, to your suggestion?
Category: technical
, Asked by: O. Barry from United States
A: We think the best place for your purpose is "etoro.com". People are often content when trying to connect to the site's servers. It's pretty a snap to install the forex program, the connection to the server is break-off free. Also, you will not find the normal communication interruptions you always get to deal with connecting to this type of servers.
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Q: any forex platform with good trade with USD/MAD that you can recommend me of
Category: money
, Asked by: Skylar Q. From Cork, Ireland
A: If you seek a fantastic forex platform where you have the option to buy and sell JPY/AED, we advice you to check "HY Markets". This forex platform is truly astounding, and it has the option need. Anyone who has JPY/AED, AUD/PAB or GBP/DKK (or more than 10 other different currencies) and in the right age is allowed to trade in this forex platform.