ICO & STO

Cryptocurrency definition A cryptocurrency is a digital /virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of this security feature. It is not issued by a central bank or government. Hence, it cannot be...

Futures, Made Simple

Financial futures are part of both ACCA FM & AFM, but tested at different levels of depth. The aim of this article is to cover the basic principles behind Futures. What Are Futures? Futures are a derivative product. They trade on futures & options markets in...

Debt or Equity – That is the Big Question?

UK interest rates have risen again this week. This trend will continue for the foreseeable future. The borrowing cost burden on companies (& individuals) is now a major problem. The issue is exacerbated by the rise in the yield on UK government bonds. The mostly...

Asset Based Valuations

Business Valuation questions regularly appear in the objective test questions in ACCA FM. There four categories of valuations: Asset Based Earnings Dividends Cash Flows This blog looks at the first of these. An asset valuation is based upon this equation : Net Assets...

Only Lionel Richie Can Dance on The Ceiling 😀

In this blog, I want to cover a topic that is part of Interest Rate Risk Hedging within the ACCA AFM syllabus. In particular, to ensure that you don’t make a common error made by many students. The collar hedge has a very clear purpose. It is designed to protect the...