Tag: theories

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

What is 'Hard Stop' A price level that, if reached, will trigger an order to sell an underlying security. Hard stops are...

What is 'On Stream' An investment that is on track to earn its expected return. Stocks, funds or any other investment vehicle...

Who was 'Karl Marx' Karl Marx was a philosopher and economist famous for his ideas about capitalism and communism. Marx, in conjunction...

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

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 ability...

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...

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

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...

What is a 'Back Stop' A back stop is the act of providing last-resort support or security in a securities offering for...