Skip to main content

Posts

What Are Stock Exchange Markets?

Stock Exchange Markets are places where people physically and electronically can buy and sell stocks, bonds, and other types of securities. Stock exchange markets provide a place where it brings the buyers and sellers together to trade. Pricing also changes according to the supply and demand in the markets. These markets also ensure fair trading through regulations. Stock exchange markets help investors grow their wealth and manage risks associated with the investments.  There are major stock exchange markets around the globe. Here we will introduce five major exchange markets in the world: New York Stock Exchange ( NYSE ) This exchange market was founded May 17, 1792 with the Buttonwood Agreement in New York City. NYSE introduced bonds in 1909 and public companies in 2006. It merged with Euronext (A pan-European stock exchange. One of the largest exchange groups in Europe) in 2007 and then acquired AMEX (American Stock Exchange was a stock exchange and focused on small and mid-siz...
Read more
Recent posts

The Power of Compound Interest Explained Simply

What is interest Interest is basically the cost you pay for borrowing money, or you earn interest by lending money to someone else.  Types of interest There are two main types of interest: simple interest, and compound interest.  1. Simple interest is when you pay or earn interest (money) from your original amount of money, also referred to as principal.  P = Principal (the starting amount of money) R = Rate of interest (per year, in %) T = Time (in years) For example, if you borrow $1,000 at 5% interest per year, in 3 year you pay: SI = (1000 * 5 * 3) / 100 = 15000 / 100 = 150 You pay $150 in interest after 3 years. Total = Principal + Interest = P + SI  In the example: 1000+150 =1150  So you will have $1,150 after 3 years. 2. Compound interest is, in simple words, interest on interest. Compound interest is when you earn or pay interest on both your principal and its interest that has been added over time. This method allows your money to grow faster because...
Read more

What are Tariffs

  Trade Barriers Trade barriers are any type of policy implemented by a government to constrain and control international trade. Trade barriers will affect imports and exports, making them more difficult or expensive according to the situation. Trade barriers are used for a variety of reasons. They can be implemented to increase and protect domestic goods over imported ones, manage the flow of goods in and out of a country, and for political reasons. Tariffs are a type of trade barriers. They are the taxes imposed on importers. When tariffs are implemented, they raise the taxes on imported goods, making them more expensive in price and lower sales. This process leads to an increase in the purchase of domestic products.  Other types of trade barriers include: quotes, subsidies, import licenses, standards and regulations, and many more.  Tariffs; The Process As mentioned above, tariffs raise the price of foreign goods for domestic consumers. When tariffs are imposed, the im...
Read more

What is BRICS

  BRICS consists of five and more countries including Brazil, Russia, India, China, South Africa, Saudi Arabia, Iran, Ethiopia, Egypt, United Arab Emirates (UAE), and Indonesia. These developing economies have joined together to build a stronger influence in the global market and between each other. BRICS was initially established in 2009 with four members, Brazil, Russia, India, and China. South Africa joined in 2010. The most recent member is Indonesia that joined in early 2025.   The purpose of BRICS is to reduce the reliance of the member countries on the US Dollar. All the members are non-European/Western countries and seek new policies and methods to grow their economies without being affected by the Western countries. BRICS can affect both politics and economics around the world. According to the BBC, containing countries like China and India, BRICS has about 45% population of the world. And about 28% of the world’s GDP. Combining all the members annual GDP, it is...
Read more

World GDP and the Future

Photo by David McBee Gross Domestic Product (GDP) measures the monetary value of all products and goods produced within a country’s border in a specific period of time. It calculates the total output of a nation. There are different types of GDP, such as Nominal GDP, Real GDP, and GDP per capita. Nominal GDP focuses on the raw GDP without considering the inflation, only current prices. Therefore, it may not be a hundred percent accurate and may include overstated or understated economic growth.  Real GDP calculates the actual economic growth regardless of price changes. The inflation is adjusted by using constant prices from a base year. It is an effective method of learning about economic growth without the impact of price changes.  GDP per capita is the GDP divided by the total population of a country. It measures the standard of living and average economic output per person in that nation.  Our today’s focus is, however, not on any of the above types of GDP. Here we w...
Read more