Tag: efficient
Make To Stock (MTS)
What does 'Make To Stock - MTS' mean Make to stock (MTS) is a traditional production strategy that is used by businesses...
Abnormal Spoilage
What is 'Abnormal Spoilage' The waste or wrecking of inventory beyond what is expected in normal business processes. Abnormal spoilage can be...
Active Management
DefinitionActive management refers to a portfolio management strategy where the manager makes specific investments with the goal of outperforming an investment benchmark index. In...
Rational Expectations Theory
DefinitionIn economics, "rational expectations" are model-consistent expectations, in that agents inside the model are assumed to "know the model" and on average take the...
Random Walk Theory
What is the 'Random Walk Theory'
The random walk theory suggests that stock price changes have the same distribution and are independent of each other,...
Rationalization
What is 'Rationalization'
Rationalization is a reorganization of a company in order to increase its efficiency. This reorganization may lead to an expansion or reduction...
Pareto Improvement
What is Pareto Improvement
Pareto Improvement is defined as a change to a situation which results in one person becoming better off without anyone else...
Passive Activity
What is 'Passive Activity' Passive activity is activity in which the taxpayer did not materially participate in during the tax year. Internal...
Passive Management
DefinitionPassive management is an investing strategy that tracks a market-weighted index or portfolio. The most popular method is to mimic the performance of an...
Venture Capital Trust (VCT)
What is 'Venture Capital Trust - VCT' A type of publicly listed closed-end fund found in the United Kingdom. A venture capital...