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What is Differential Analysis? Differential analysis is a strategy used to make the best decision. Possible choices are compared to determine which...

How does transfer pricing work? Transfer pricing allows companies to set prices when exchanging goods between their subsidiaries or companies that...

What is CVP and Cost-Volume-Profit Analysis? Cost-Volume-Profit analysis is used in accounting to find break-even points (when profit less cost is...

What is a Production Possibilities Curve? The Production Possibilities Frontier Curve (PPF) is a statistical graphic curve that depicts the compari...

What are Consumer Nondurables and Services? Consumer non durables are goods with a short lifespan of under 3 years. This can be anything from consu...

What are Determinants of Economic Growth? The primary determinants of a country’s economic growth are the goods and services that comprise the Gr...

What rights does a public stockholder have? Common shareholders elect the board of directors. They vote. They have the right to quarterly financial...

What is a strike price? Strike prices are used in conjunction with options. Calls and puts give investors the right to buy or sell stocks at predet...

What is the Efficient Markets Theory? The Efficient Markets Theory says that stocks trade at their fair value all of the time, assuming all informa...

How are risk and reward related? Take more risk, expect more reward. A lottery ticket might be worth a billion dollars, but if the odds are one in...

What is par value? The notional value of a stock or bond before an offering takes place. When a company is started, founders come up with a par val...

What is an underwriter? Hit play to find out.

What is bankruptcy? Deadbeats who can't pay their bills declare bankruptcy. Either they borrowed too much money, or the business fell apart. They t...

What's a dividend? At will, the board of directors can pay a dividend on common stock. Usually, that payout is some percentage less than 100 of ear...