What is Skewness? Skewness is a measure of asymmetry or distortion of symmetric distribution. It measures the deviation of the given distribution of a random variable from a symmetric distribution, such as normal distribution. A normal distribution is without any skewness, as it is symmetrical on both sides. Hence, a curve is regarded as skewed…
What is Slippage? Slippage occurs when the execution price of a trade is different from its requested price. It occurs when the market orders could not be matched at preferred prices – usually in highly volatile and fast-moving markets prone to unexpected quick turns in certain trends. Any variation between the executed price and the…
What is Six Sigma? Six Sigma is a term used to define various techniques and management tools designed to make business processes more efficient and effective. It provides statistical tools to eliminate defects, identify the cause of the error, and reduce the possibility of error. Thus, Six Sigma creates an environment of continuous process improvement,…
What is the Small Business Administration (SBA)? The Small Business Administration (SBA) is a federal agency of the United States that serves small businesses. It provides financial assistance to small businesses that are unable to obtain funds on rational terms from the normal lending sources. Such assistance comes in the form of guarantees on the…
What is an Export Trading Company (ETC)? An export trading company (ETC) provides support services to firms that specialize in exporting. From the client’s perspective, it would include warehousing, shipping, insuring, and more. In addition, export trading companies also handle the legal requirements involved throughout the exporting process for various goods. An example would be…
What is an S Corporation (S Subchapter)? An S Corporation (S Corp) is a closely held corporation (Limited Liability Company (LLC), partnership, or C Corporation) that is treated as a pass-through entity for federal tax purposes. It is created through election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code….
What is Exponential Growth? Exponential growth is when data rises over a period of time, creating an upwards trending curve on a graph. In mathematics, when the function includes a power (or an exponent), the calculation would be increasing exponentially. For example, if hens lay eggs three times per year and triples every year, then…
What is the EAFE Index? The EAFE Index (Europe, Australasia, and the Far East) was created to measure the performance of the stock markets in developed markets – excluding the U.S. and Canada. The indicator is maintained by MSCI Inc. and is popularly known as the MSCI EAFE Index. MSCI Inc. is a U.S.-based finance…
