This article written by Akshit GUPTA (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) presents the strategies of straddle and strangle based on options. Introduction In financial markets, hedging is implemented by investors to minimize the risk exposure and maximize the returns for any investment in securities. While hedging does not necessarily … Read more
This article written by Akshit GUPTA (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) presents the different option spreads used to hedge a position in financial markets. Introduction In financial markets, hedging is implemented by investors to minimize the risk exposure for any investment in securities. While hedging does not necessarily eliminate … Read more
In this article, Jayati WALIA (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) presents the historical method for VaR calculation. Introduction A key factor that forms the backbone for risk management is the measure of those potential losses that an institution is exposed to any investment. Various risk measures are used for … Read more
My experience at the Bank of Lebanon In this article, Jade RAKHA (ESSEC Business School, Bachelor of Business Administration, 2021) shares with us his experience at Banque Du Liban. Banque Du Liban Before the Central Bank of Lebanon was established in 1963, the Bank of Syria and Lebanon had the role of the central bank. … Read more
This article written by Akshit GUPTA (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) introduces equity structured products, which are complex financial products proposed to investors to benefit from market expectations. Introduction Structured products are pre-packaged product offerings which are designed as per the client’s risk-return profile. The returns on the investments … Read more
This article written by Akshit GUPTA (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) presents the concept of covered call used in equities option contracts. Introduction Hedging is a strategy implemented by investors to reduce the risk in an existing investment. In financial markets, hedging is an effective tool used by investors … Read more
In this article, Jayati WALIA (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) presents an overview of standard deviation and its use in financial markets. Definition The standard deviation is a measure that indicates how much data scatter around the mean. The idea is to measure how an observation deviates from the … Read more
In this article, Youssef LOURAOUI (Bayes Business School, MSc. Energy, Trade & Finance, 2021-2022) elaborates on the concept of passive investing. This article will offer a concise summary of the academic literature on passive investment. After that, we’ll discuss the fundamental principles of passive investment. The article will finish by establishing a link between passive … Read more
In this article, Youssef LOURAOUI (Bayes Business School, MSc. Energy, Trade & Finance, 2021-2022) elaborates on the concept of alpha, one of the fundamental parameters for portfolio performance measure. This article is structured as follows: we introduce the concept of alpha in asset management. Next, we present some interesting academic findings on the alpha. We … Read more
In this article, Youssef LOURAOUI (Bayes Business School, MSc. Energy, Trade & Finance, 2021-2022) elaborates on the concept of active investing, which is a core investment strategy that relies heavily on market timing and stock picking as the two main drivers of financial performance. This article is structured as follows: we introduce the concept of … Read more
Use of AI in investment banking In this article, Daksh GARG (ESSEC Business School, Master in Strategy & Management of International Business (SMIB), 2020-2021) explains how the use of AI is transforming the investment banking industry. What is artificial intelligence? Artificial intelligence (AI) generally refers to the ability of machines to exhibit human-like intelligence and … Read more
Bollinger Bands In this article, Jayati WALIA (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) presents the popular Bollinger bands used in technical analysis. This post is organized as follows: we introduce the concept of Bollinger bands and provide an illustration with Apple stock prices. We delve into the interpretation of Bollinger … Read more
In this article, Jayati WALIA ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) presents credit risk. Introduction Credit risk is the risk of not receiving promised repayments due to the counterparty (a corporate or individual borrower) failing to meet its obligations and is typically used in context of bonds and traditional loans. … Read more
Peloton’s uphill battle with the world’s return to order In this article, William ANTHONY (ESSEC Business School, Global Bachelor of Business Administration, Exchange Student from the University of Bath, 2021-2022) discusses the market reaction to Peloton’s quarterly results. Description of the firm Peloton is an American company which produces exercise equipment and media streaming. Its … Read more
What I learned from my time on the stock market In this article, Joshua WAN (ESSEC Business School, Global Bachelor of Business Administration, Exchange Student from Stockholm University, Fall 2021) shares what he has learnt in the stock market. I’m sure many who have chosen the Sim Trade course are active on the stock market … Read more
Marketable Securities In this article, Shruti Chand (ESSEC Business School, Master in Management, 2020-2022) elaborates on the concept of marketable securities. This read will help you get started with understanding marketable securities on the balance sheet of a business. Introduction Marketable securities are financial instruments that can be converted into cash easily by the firm. Marketable securities are recorded … Read more
Liabilities In this article, Shruti CHAND (ESSEC Business School, Grande Ecole Program – Master in Management, 2020-2022) elaborates on the concept of liabilities. This read will help you get started with understanding the liability side of the balance sheet. Introduction A liability is an obligation that a company has in return of economic benefits that the company has … Read more
Assets In this article, Shruti CHAND (ESSEC Business School, Master in Management, 2020-2022) elaborates on the concept of assets. This read will help you get started with understanding Assets side on the balance sheet of a company. Introduction An asset can be defined as anything that has an economic value or future benefit. Assets are an important part of … Read more
Intangible Assets In this article, Shruti Chand (ESSEC Business School, Master in Management, 2020-2022) elaborates on the concept of Intangible Assets This read will help you get started with understanding intangible assets on the balance sheet of a company. Meaning: An intangible asset is an asset that has no physical existence. Such assets are identifiable when it is separable, … Read more
Fixed Assets In this article, Shruti CHAND (ESSEC Business School, Grande Ecole Program – Master in Management, 2020-2022) elaborates on the concept of fixed assets. Fixed Assets: A fixed asset on a balance sheet is any asset that has a useful life greater than one year. Typically, a fixed asset is not intended to be resold within a … Read more