LEMONS PROBLEM
The issue of an imbalance or asymmetry of information, between the buyer and seller of an investment or product. Economist George Akerlof popularized the term in his research paper in 1970. It derived from his demonstration of the concept of asymmetric information using the defective used cars as an example; these cars are known as lemons in the market. This problem is evident in fields such as insurance and corporate finance.
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Concentration Ratio
Ratio indicating the relative size of companies in respect to their industry in general. Low concentration ratio denotes higher competition among t ...
Back-To-Back Letters Of Credit
Two letters of credit (LCs) utilized together to aid a merchant in financing the buying of services or equipment from a subcontractor. With the aut ...
Stock Market Crash of 1987
Rapid and one of the most severe downturn in stock prices which took place on October 19, 1987. Following five days of intensifying stock market pl ...
Z-Score
“Z-Score” is a statistical measurement showing the relationship of the score to the mean. It can be positive or negative, which means t ...
Premium
The total cost of an option.
The difference between the higher price paid for a fixed-income secur ...
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SEE FOREX TUTORIAL
Income Sources for Creating Retirement Fund
We have already tackled the overview of retirement, its significance, and allocating money for it, the next we are about to discuss is looking for ...
Retirement Planning: Allocating Money for Retirement
In the previous tutorial, we outlined the significance of retirement. Now, let’s talk about the how in retirement planning.
“ ...
Retirement Planning: Maximizing the Power of Compounding
“The early bird catches the worm.” – William Camden
Buying a Home: Finding the Best House
Nothing can stop you from looking for the home of your dreams. Even though you have no agent, you can do your own diligence. Drive around neighborh ...
Digesting Financial Statements: Pension Plans
Deducing on the topic we previously discussed, this tutorial now puts the spotlight on the pension fund. It is a distinct long-term obligation for ...
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