Define Economic Capital
Economic capital refers to the money that a business or individual has available to invest in new ventures or cover unexpected expenses. It is also known as financial capital. The amount of economic capital available can vary...
The current state of the economy
The current state of the economy is a mixed bag. On the one hand, unemployment rates are at historic lows and wages are finally beginning to rise after years of stagnation. On the other...
What is 'Eating Stock' The forced purchase of a security when there are insufficient buyers. Eating stock often applies to underwriters of an initial public offering (IPO), if a certain level of subscription is guaranteed but is...
What is 'Easement' Easement is a real estate concept that defines a scenario in which one party uses the property of another party, where a fee is paid to the owner of the property in return for...
DefinitionThe eclectic paradigm is a theory in economics and is also known as the OLI-Model or OLI-Framework. It is a further development of the internalization theory and published by John H. Dunning in 1979. Eclectic Paradigm What is...
What is 'Earnings Momentum' When corporate earnings per share (EPS) growth is accelerating or decelerating from the prior fiscal quarter or fiscal year. Earnings momentum typically coincides with accelerating revenues and/or expanding margins caused by increased sales,...
DefinitionIn economics, specifically general equilibrium theory, a perfect market is defined by several idealizing conditions, collectively called perfect competition. In theoretical models where conditions of perfect competition hold, it has been theoretically demonstrated that a market will reach an...
Capitalism is one of the systems of political and economic governance that is based on the idea of private ownership of modes of production and capital. In this system, the production of goods and services is done for the...
What is 'Call Loan' A loan provided to a brokerage firm and used to finance margin accounts. The interest rate on a call loan is calculated daily. The resulting interest rate is referred to as the call...
What is 'Same Property Rule' A regulation relating to IRA rollovers stipulating that whenever a financial asset is withdrawn from a retirement account or IRA (for the purpose of funding a new IRA, for example), it must...