What Is an Inverse ETF? An inverse ETF is an exchange traded fund (ETF) constructed by using various derivatives to profit from a decline in the value of an underlying benchmark. Investing in inverse ETFs is similar to holding various short positions, which involve borrowing securities and selling them with the hope of repurchasing them
What Is an Inverse Floater? An inverse floater is a bond or other type of debt whose coupon rate has an inverse relationship to a benchmark rate. An inverse floater adjusts its coupon payment as the interest rate changes. An inverse floater is also known as an inverse floating rate note or a reverse floater.
What Is the Inverse Head and Shoulders? An inverse head and shoulders, also called a “head and shoulders bottom”, is similar to the standard head and shoulders pattern, but inverted: with the head and shoulders top used to predict reversals in downtrends. This pattern is identified when the price action of a security meets the following
What Is an Inverse Volatility ETF? An inverse volatility exchange-traded fund (ETF) is a financial product that allows investors to gain exposure to volatility, and thus hedge against portfolio risk, without having to buy options. As long as volatility remains low, investors may see a substantial return, as an inverse volatility ETF is essentially a bet that
What Is an Inverted Yield Curve? An inverted yield curve shows that long-term interest rates are less than short-term interest rates. With an inverted yield curve, the yield decreases the farther away the maturity date is. Sometimes referred to as a negative yield curve, the inverted curve has proven in the past to be a
What Is Invested Capital? Invested capital is the total amount of money raised by a company by issuing securities to equity shareholders and debt to bondholders, where the total debt and capital lease obligations are added to the amount of equity issued to investors. Invested capital is not a line item in the company’s financial
What Is International Finance? International finance, sometimes known as international macroeconomics, is the study of monetary interactions between two or more countries, focusing on areas such as foreign direct investment and currency exchange rates. Key Takeaways International finance is the study of monetary interactions that transpire between two or more countries.International finance focuses on areas
What Is the International Finance Corporation (IFC)? The International Finance Corporation (IFC) provides financing of private-enterprise investment in developing countries around the world, through both loans and direct investments. Affiliated with the World Bank, it also provides advisory services to encourage the development of private enterprise in nations that might be lacking the necessary infrastructure
What Is International Investing? International investing involves selecting global investment instruments as part of a diversified portfolio. People often invest internationally to increase the diversification of their portfolios and spread investment risk among foreign markets and companies. Key Takeaways International investing means holding securities issued by companies or governments outside an investor’s home country.Through global
What Is Internationalization? Internationalization describes the process of designing products to meet the needs of users in many countries or designing them so they can be easily modified, to achieve this goal. Internationalization might mean designing a website so that when it’s translated from English to Spanish, the aesthetic layout still works properly. This may
