Three Black Crows
How to Trade the Three Black Crows Pattern In the financial markets, a downturn is called a three-crows pattern when three long candlesticks all trend down in a row. This pattern can indicate that an investor should avoid investing during this time. Here are some trading rules to consider if you're considering using this pattern. 1. Use a candlestick chart...
Marginal Rate of Technical Substitution
What is the Marginal Rate of Technical Substitution (MRTS)? The Marginal Rate of Technical Substitution (MRTS) is the rate at which one input can be replaced by another input while still producing the same output. In other words, it measures how much of one input can be substituted for another input without affecting the output. The MRTS is used to...
Activity Ratios
How Activity Ratios Can Help Your Business Using activity ratios to measure your organization's performance is a valuable tool for determining how well-managed you are. In general, a well-managed organization utilizes its resources efficiently while maximizing its revenue. Here are some examples of common activity ratios. Best-managed companies continually improve these ratios and continue to look for ways to further...
Fully Diluted Shares
What are fully diluted shares and why do they matter Fully diluted shares refer to a company's total number of outstanding shares, including any that have been authorized but not yet issued. This is important because it gives investors a more accurate picture of a company's ownership structure. For example, if a company has 1 million shares outstanding and 50,000...
Domestic Corporation Or Limited Liability Company?
If you have been looking into starting your own business, you may be wondering if it is best to create a domestic corporation or start a Limited liability company. Whether you choose one or the other is really up to you, but this article will cover the basics. The different types of corporations can vary widely, depending on what...
Declining Balance Method
What is the declining balance method and how does it work The declining balance method is a way of calculating the depreciation of an asset. Under this method, the depreciation expense is recorded at a higher rate in the early years of an asset's life, and then decreases over time. This is in contrast to the straight-line method, which records...
Costs of Building a Distribution Network
Building a distribution network for your e-commerce business can be costly, but it is a necessary evil. This article focuses on the costs of building a distribution network, its methods and maintenance. You can follow these steps to build your own distribution network and start selling your products and services to the world! But before you get started, read...
Winding Up
What is winding up and what happens during the process Winding up is the process of bringing a company to an end. This can be done voluntarily, by the shareholders, or involuntarily, by the court. During winding up, all of the company's assets are sold off and the proceeds are used to pay off its debts. Once the debts have...
Audit Committee
What is an audit committee and what do they do An audit committee is a body within a company that is responsible for overseeing the financial reporting process and auditing activities. The audit committee is typically composed of senior executives, including the chief financial officer and treasurer. Its role is to protect the interests of shareholders by ensuring that the financial...
How to Calculate a Hazard Rate
A hazard ratio is a comparison between hazard rates. This statistic measures the relative risk of death from two treatments, and it is usually calculated using the hazard ratio. In a survival analysis, a hazard rate may be twice as high in the treated group as it is in the control group. However, there are problems associated with relying...