The concept of technostructure comes from JK Galbraith and refers to the group of technicians or professionals (such as economists, marketers, engineers, lawyers, etc.) who run large companies and who have enough power to make business decisions. Let's say that, depending on the power they take within the company, the technostructure will determine the power … Read more
The agency theory is defined as that situation in which an agent or a person has been sued to carry out an activity or work on behalf of a company or person, the latter being the main applicant for said work. Therefore, to understand the concept of agency theory, it is important that we bear … Read more
The concept of securitization refers to the process through which an issuer creates a financial instrument by combining other financial assets and marketing these new instruments to investors. It encompasses any type of financial asset and contributes to the liquidity on the market. In securitization, a financial asset little liquid, such as a home, in … Read more
From a financial point of view, equity represents those assets, rights and obligations owned by a company. In other words, equity is the set of economic and financial means that an entity owns and uses in order to carry out its professional activity. Therefore, in economic terms, a homogeneous set of assets is called an … Read more
The tracking error ratio offers us data on the profitability differential between a Investment fund and its benchmark or benchmarking for a specified period of time. It is often used to compare index funds against their benchmark stock index. How is the tracking error calculated? Its calculation formula is the following: Tracking error = σ … Read more
The Triple witching hour concept, known in English as "Thir witching hour", is well known among investors and traders due to the intensity with which they expect and experience this situation. The third Friday of March, June, September and December is known as triple witch hour, which are months in which quarterly options contracts expire … Read more
