Tag: making
Satisficing
DefinitionSatisficing is a decision-making strategy or cognitive heuristic that entails searching through the available alternatives until an acceptability threshold is met. The term satisficing,...
Macroeconomic Factor
What is a Macroeconomic Factor
A macroeconomic factor is a broad concept used in economics to describe anything that could affect the economy as a...
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...
Backward Integration
What is 'Backward Integration'
Backward integration is a form of vertical integration that involves the purchase of, or merger with, suppliers up the supply chain....
Backpricing
What is 'Backpricing' A pricing method used in specific futures contracts whereby the price of the commodity to be delivered is priced...
Canary Call
What is 'Canary Call' A step-up bond that cannot be called after completing its first-step period. The issuer of the bond reserves...
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...
Correction
Corrections are price declines that are temporary, and interrupt the uptrend of an asset in the market. A correction can work as a precursor...
Call Risk
What is 'Call Risk' The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of...
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...