All about financial DERIVATES
A derivative is a financial contract where a base value is agreed upon by means of an underlying asset, security or index. The buyer agrees to purchase the asset on a specific date at a specific price. There are many underlying assets that are contracted to various financial instruments, such as stocks, currencies, commodities, bonds […]
The financing of public agencies and their risk measurement tool
General idea Fixed income products are instruments with a low associated risk and a given return, i.e. known in advance. It is true that there are many other more profitable investments, but fixed income offers greater guarantees. What is happening? What are they used for? Well, companies that need financing can resort to equities or fixed […]
How does the economy work? Part 2
General idea We still need to define many other unknowns to explain the most relevant aspects of the economy in a simpler way, so we will be defining and relating them little by little. Principles of economics What is the risk premium and what is it for?One of the most important aspects of the economy […]
Universal Basic Income
General idea The Finnish Social Insurance Institute has recently published the results of an experiment on such a universal basic income. This study has been analyzed in Finland and it is the largest experiment ever carried out. We will now proceed to study its results which, surprisingly, have been neither bad nor good, we could […]
Tax burden or tax effor?
General idea The most popular indicator to measure the degree of tax collection in our economy is the tax burden meter. It is a ratio that relates all taxes collected in a nation to GDP. Future scenario In 2019, tax collection accounted for 34.4% of GDP (tax burden figure). However, our good governance says that […]
Progressivism / Conservatism / Liberalism / Capitalism / Socialism
General idea In this post we will see how to differentiate the following economic ideas; Progressivism / Conservatism / Liberalism / Capitalism / Socialism IIdeologies Progressivism is a political tendency, oriented towards the development of a welfare state, the defence of civil rights, citizen participation and a certain redistribution of wealth. It is usually framed […]
Let’s differentiate the three types of IPOs
General idea On certain occasions, companies require financing, so they offer savers the possibility of acquiring part of their company, how? By subscribing shares in the company. Types of IPOs There are different ways of subscribing shares, so we will look at them in more detail:– Takeover bid (takeover bid). This takes place when a […]
Inconsistency in Spain’s interest rates – Part 2
In the previous article, we discussed how the only asset that provides sufficient confidence to hold your money over time is government debt. However, we also said that for a country to offer low interest rates, translating as zero risk, the country needs to be in a good economic situation. So why is Spain’s interest […]
Government bond interest rates (10-year bonds). Part 1
In recent days we have seen how the 10-year bond has started to pay negative interest rates, but the question is… how did we reach this situation? When economic agents have income, this income can be transformed into savings, and these savings can be used to acquire consumer goods, capital goods or financial assets. Many […]
