26 Results for Tag: theories

Keynesian Economics

DefinitionKeynesian economics are the various macroeconomic theories about how in the short run – and especially during recessions – economic output is strongly influenced by aggregate d

Hard Stop

Hard Stop What is 'Hard Stop' A price level that, if reached, will trigger an order to sell an underlying security. Hard stops are set at a constant price and are inherently good until can

On Stream

On Stream What is 'On Stream' An investment that is on track to earn its expected return. Stocks, funds or any other investment vehicle that is presently performing in a way that allows it

Karl Marx

Karl Marx Who was 'Karl Marx' Karl Marx was a philosopher and economist famous for his ideas about capitalism and communism. Marx, in conjunction with Friedrich Engels, published "The Comm

Absolute Interest

Absolute Interest What is 'Absolute Interest' Total and complete ownership of an asset or property. An individual with an absolute interest has both a legal and beneficial possession of sa

Ability-To-Pay Taxation

Ability-To-Pay Taxation What is 'Ability-To-Pay Taxation' Ability-to-pay taxation is a progressive taxation principle that maintains that taxes should be levied according a taxpayer's abil

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 model's predictions

Rational Choice Theory

DefinitionRational choice theory, also known as choice theory or rational action theory, is a framework for understanding and often formally modeling social and economic behavior. The basic


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 in

Rational Pricing

DefinitionRational pricing is the assumption in financial economics that asset prices will reflect the arbitrage-free price of the asset as any deviation from this price will be "arbitraged
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