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Scarcity Principle

The Scarcity Principle, like other principles of economics, comes from the principles of psychology and behavioral sciences. As per the simplest definition, it states...

Back-to-Back Loan

DefinitionA Back-to-back loan is a loan agreement between entities in two countries in which the currencies remain separate but the maturity dates remain fixed....

Basis Point

DefinitionA basis point is one hundredth of a percent or equivalently one ten thousandth. The related concept of a permyriad is literally one part...

Backwardation

DefinitionNormal backwardation, also sometimes called backwardation, is the market condition wherein the price of a commodities' forward or futures contract is trading below the...

Bailout

What is a 'Bailout' A bailout is a situation in which a business, an individual or a government offers money to a...

Call Price

What is a 'Call Price' A call price is the price at which a bond or a preferred stock can be redeemed...

Call Date

DefinitionA callable bond is a type of bond that allows the issuer of the bond to retain the privilege of redeeming the bond at...

Contango

DefinitionContango is a situation where the futures price of a commodity is higher than the anticipated spot price at maturity of the futures contract....

CPI – Consumer Price Index

The consumer price index (CPI) is metric that denotes prices of goods and services including food items, transportation, medical care, and others used by...

Compound Interest

DefinitionCompound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. It...

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