PRINCIPAL-AGENT PROBLEM
Conflicts of interest and moral hazard issues that arise when a principal hires an agent to perform specific duties that are in the best interest of the principal but may be costly, or not in the best interests of the agent. The principal-agent problem develops when a principal creates an environment in which an agent has incentives to align its interests with those of the principal, typically through incentives. Principals create incentives for the agent to act as the principal wants because the principal faces information asymmetry and risk with regards to whether the agent has effectively completed a contract.
POPULAR TERMS
Competitive Advantage
Advantage which allows the firm to generate higher sales or margins and/or keep more customers than its rivals. Some examples of competitive advant ...
Organizational Structure
It is a system used to describe a hierarchy in an organization. It describes each job and its function, and where it reports to in the organization ...
Buydown
Mortgage-financing method in which the buyer endeavors to lower the interest rate on a mortgage for at least its first few years. Usually, the buil ...
OSL
It was first formed in 1881, which is considered as the main stock market of Norway. It is known for stock in oil and international shipping compan ...
Origination Points
This kind of fee is charged to the borrower by the lender in order to pay off him or her for the evaluating, processing and approving mortgage loan ...
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SEE FOREX TUTORIAL
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: Introduction
Financial statements open a window how healthy a company is (in terms of finances). This document presents the financial activities of a person or ...
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 ...
Introduction to Inflation
I asked my grandparents about the cost of living during World War II. They told me people during that period could buy a house for $5,000, a car fo ...
A Guide to Your Personal Income Tax: Essentials
In the United States, the progressive tax system is one of the most important yet misunderstood concepts of tax planning. Whenever people are asked ...
ECONOMIC CALENDAR
| Time | Country | Indices | Period |
|---|---|---|---|
| 08:30 | Producer & Import Prices | Mar | |
| 12:00 | Bundesbank Monthly Report | ||
| 14:30 | NY Fed Empire State manufacturing index | Apr | |
| 14:30 | FOMC Member Charles Evans Speaks | ||
| 16:30 | Overview of business prospects, according to the Bank of Canada | 1 quarter | |
| 16:30 | Bank of Canada Senior Loan Officer | 1 quarter | |
| 19:00 | FOMC Member Charles Evans Speaks | ||
| 22:00 | TICS | Feb | |
| 02:00 | FOMC Member Eric Rosengren Speaks |
