Tag: Business

The Role of Currency Risk in International Investing

Glenn Knox

Currency risk management can enhance the stability and return of international investments. Effective strategies include hedging against exchange risk as well as diversifying across regions and currencies. Currency risk (commonly referred to as Foreign Exchange Risk or FX risk) can have a direct impact on returns from international investments. Transaction Exposure Transaction exposure refers to the risk a business takes from fluctuations in foreign exchange rates between when an international transaction begins and ends. Since most international business deals don’t happen instantaneously, it is possible that currency values could change…

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The Role of Market Microstructure in Investment Decision-Making

Glenn Knox

Market microstructure focuses on the processes and outcomes of asset exchange. It examines how explicit trading rules impact price formation. Traders and investors utilize its findings to optimize trading algorithms, reduce performance drag, improve stock selection processes and portfolio construction strategies, as well as use its findings for investment selection purposes. Market microstructure includes liquidity, transaction costs, prices, quotes and trading volumes as examples of market microstructure. Other characteristics may include information availability, adverse selection and the monopoly power of market makers. Asset Pricing Market microstructure research investigates the processes…

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How Economic Indicators Impact Business Investment

Glenn Knox

Economic indicators offer business owners insight into overall market demand. Published by various departments and agencies on a regular basis, economic indicators fall into three categories: leading indicators tend to change before economic changes do; lagging indicators confirm trends; and coincident indicators occur simultaneously with economic activity. A midsized business executive who is looking to ensure their businesses’ sustainability in the long run should learn how to interpret what economic conditions may prevent him from making plans. Here are 10 signs to watch out for. Inflation Economic indicators are statistics…

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The Benefits of Diversifying Your Investment Portfolio

Glenn Knox

Everybody knows the adage “Don’t put all your eggs in one basket.” Indeed, diversifying your investment portfolio is key to reaching your financial goals. Diversification refers to spreading your investments among asset classes, industries, and styles in order to reduce the risk that negative events affect all your portfolio at once. 1. It’s a way to protect against losses. As is commonly stated, “don’t put all your eggs in one basket,” this piece of advice applies equally well when investing. While every successful venture does exist, many unsuccessful investments have…

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Tzvi Ozder Talks Business, Leadership, and the Rewards of Entrepreneurship 

Olive Sawyer

Tzvi Odzer talks about the challenges and rewards of leadership and entrepreneurship. There are many rewards when it comes to leadership and entrepreneurship. Starting an enterprise from the ground up brings a host of challenges but also has many perks. Entrepreneur Tzvi Odzer has started or helped start several companies and enjoys mentoring others with similar goals. This article discusses the rewards of becoming an entrepreneur for those who are strongly considering starting their own business. Businesses fail every day, facing financial risks, bankruptcy, and competitive challenges. However, other businesses…

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