Financial Info

In April  we estimated that COVID-19 is pushing between 40 and 60 million into extreme poverty . Since then, the  epicenter of the pandemic has shifted from Europe and North America to the global south . This has increased the death toll in low- and middle-income countries, induced longer shutdowns, and increased the economic costs of the pandemic. As a result, our estimates of the impact of the virus on global poverty have shifted as well.  Using the newly launched growth forecasts of June from the  Global Economic Prospects , we can  update the estimate of the pandemic’s impact on global poverty . The new growth forecasts contain two scenarios—baseline and downside—allowing us to explore two different scenarios for how the pandemic may impact poverty. The baseline scenario assumes that the outbreak remains at levels currently expected and that activity recovers later this year, while the downside scenario assumes that outbreaks persist longer than expected, fo...

The World Bank Board of Executive Directors today approved a $100 million Development Policy Credit (DPC) to continue support to the Nepal Government in improving the financial viability and governance of the electricity sector and recovering from the COVID-19 crisis. The approved operation is the second in a series of three DPC operations to support key policy, regulatory and institutional reforms to unlock the economic potential of Nepal's electricity sector. These include measures to improve the financial viability of the Nepal Electricity Authority (NEA) as the sole off-taker; establish a regulatory framework that is autonomous, transparent, and accountable; achieve greater integration with the regional electricity market to ensure the optimal use of Nepal’s hydropower resource; and restructure NEA to empower provincial and local governments under the federal structure. “Continued reforms to strengthen the electricity sector in Nepal is of utmost importance during the cri...

What is a Bear Trap? A bear trap is a technical pattern that occurs when the performance of a stock, index, or other financial instrument incorrectly signals a reversal of a rising price trend. The trap is thus a false reversal of a declining price trend. Bear traps can tempt investors into taking long positions based on anticipation of price movements which do not end up taking place. Key Takeaways A bear trap is a false technical indication of a reversal from a down- to an up-market that can lure unsuspecting investors. These can occur in all types of asset markets, including equities, futures, bonds, and currencies. A bear trap is often triggered by a decline that induces market participants to open short sales, which then lose value in a reversal when shorts are forced to cover. How Does a Bear Trap Work? A bear trap can prompt a market participant to expect a decline in the value of a financial instrument, prompting the execution of a short position on the asset. However, the valu...

What Is a Growth Stock? A growth stock is any share in a company that is anticipated to grow at a rate significantly above the average growth for the market. These stocks generally do not pay dividends. This is because the issuers of growth stocks are usually companies that want to reinvest any earnings they accrue in order to accelerate growth in the short term. When investors invest in growth stocks, they anticipate that they will earn money through capital gains when they eventually sell their shares in the future.

What is Share Turnover? Share turnover is a measure of stock liquidity calculated by dividing the total number of shares traded over a period by the average number of shares outstanding for the period. The higher the share turnover, the more liquid company shares are. Understanding Share Turnover Share turnover ratio indicates how easy, or difficult, it is to sell shares of a particular stock on the market. It compares the number of shares that change hands during a particular period with the total number of shares that could have been traded during that same period. Investors may be unwilling to put their money at risk by acquiring the shares of a company with low share turnover. That said, share turnover is interesting as a measure because the correlations don't always hold up. Investors often assume that smaller companies will see less share turnover because they are, in theory, less liquid than large companies. However, these companies often see a greater portion of share turno...