DefinitionThe business cycle, also known as the economic cycle or trade cycle, is the downward and upward movement of gross domestic product around its long-term growth trend. The length of a business cycle is the period of time containing...
DefinitionShares outstanding are all the shares of a corporation or financial asset that have been authorized, issued and purchased by investors and are held by them. They have rights and represent ownership in the corporation by the person who...
What is 'Target Cash Balance' The ideal amount of cash that a company wishes to hold in reserve at any given point in time. This figure hopes to strike a balance between the investment opportunity costs of...
Definition
A naked trust is a trust in which the beneficiary has a right to both income and capital and has the ability to request that both be transferred into his own name, as opposed to a remainder trust. Assets...
What is an 'Underinvestment Problem'
When a corporation refuses to invest in low-risk assets in order to increase its wealth at the expense of debt holders, this is referred to as an agency dilemma. Low-risk initiatives give more security for...
What is 'Natural Gas Storage Indicator - EIA Report' The U.S. Energy Information Administration (EIA) weekly estimate of working natural gas volumes held in underground storage facilities at the national and regional levels. Changes in these gas...
The amount of money that a company generates during a specific time period is called as ‘earnings’. This amount of money, to put it simply is the profits it has made in a certain amount of time which is...
Definition
Keiretsu is a group of companies that are intertwined in terms of business relationships and stock ownership. An example of an informal business group is the entrepreneur's association. During the second half of the twentieth century, the keiretsu retained...
What is depreciation and how does it work
Depreciation is an accounting method used to spread the cost of a long-term asset over its useful life. depreciation is used to account for declines in value due to obsolescence, wear and...
DefinitionA credit card is a payment card issued to users to enable the cardholder to pay a merchant for goods and services based on the cardholder's promise to the card issuer to pay them for the amounts so paid...