Opening price, closing price and trading sessions of stock market

Have you ever wondered why opening price of a stock is different from closing price from previous day? This is because before opening of stock market, there is a session called "pre-opening". Similarly prior to closing of trading day, there is a corresponding "pre-closing" session. Opening price and closing price are determined separately during these sessions based on share price that can result in the highest matched quantities , therefore closing price and opening price could be different.

Continue ReadingOpening price, closing price and trading sessions of stock market

Impairment and expected credit loss (ECL)

Impairment and expected credit loss (ECL) are accounting terms used to describe reduction in value of an asset. Some industries, such as banking, are especially sensitive to impairment and ECL. The intention of this article is to explain concept of these two terms in simplified way, so that even if you are not accountant, you are able to interpret the financial reports correctly.

Continue ReadingImpairment and expected credit loss (ECL)