MARGINAL ANALYSIS
Process of examining the benefits of an activity, in contrast to the additional costs of that activity. Firms use marginal analysis as a decision-making tool in maximizing their profits. Individuals use the analysis in everyday decisions. Also, this is widely used in microeconomics by assessing how marginal manipulation of the comprising variables affect the complex system.
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Asset Substitution Problem
A problem which arises when a company trades its low-risk assets for high-risk investments. This substitution moves the value from the bondholders ...
Lawful Money
Any currency, in coin or paper form, that is issued by the United States Treasury, not the Federal Reserve System. It also includes gold and silver ...
Red Clause Letter Of Credit
It refers to a specific type of letter of credit where a buyer extends an unsecured loan to a seller. This permits documentary credit beneficiaries ...
Trust Certificate
Bond or debt investment backed by other assets and serve like a collateral. Normally in a public company, the assets may be seized or sold for the ...
Cowboy Marketing
Slang term for a situation in which a firm is unaware a marketer sends massive spam emails to everyone promote the stock, instead of producing legi ...
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Buying a Home: Getting Pre-Approved for a Mortgage
You have determined the amount needed to buy the home of your dreams. Now, figure out the amount a bank can lend you. The rationale behind this is ...
What is the Standard Moving Cost?
You concluded remodeling is expensive upon considering all important factors. So you decided to move to another house instead. But, is moving less ...
A Guide to Your Personal Income Tax: Last-Minute Moves
December 31 is fast approaching. The next thing you know you need to file your income tax return. So before you get swarmed by the hustle and bustl ...
Principles of Trading: Introduction
Trading is an active participation in the financial markets. Those who partake in buy-and-hold investing are called traders. Also called market pla ...
Retirement Planning: Last-Minute Preparation
The road to comfortable and enjoyable retirement is not an easy road. You will experience some challenges along the way as you save up for your gol ...
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