What is Mental Accounting? The mental accounting concept was introduced by Richard Thaler in a paper titled “Mental Accounting Matters,” which was published in the Journal of Behavioral Decision Making. Thaler noted that people place the value of money differently, and it exposes them to irrational decision-making. In simple terms, the concept states that individuals…
What is MasterCard? MasterCard is a technology firm in the global electronic payment industry responsible for processing electronic payments, through its full range of payment programs and services. It partners with various institutions worldwide to connect different participants in various types of transactions, including businesses, financial institutions, merchants, and consumers using its branded electronic payment…
What is Dragonfly Doji Candlestick? A dragonfly doji candlestick is a candlestick pattern with the open, close, and high prices of an asset at the same level. A dragonfly doji pattern does not appear constantly. It is used as a technical indicator that signals a potential reversal of the asset’s price. What is a Doji…
What is Key Rate Duration? Key rate duration is a measure of a bond or bond portfolio’s sensitivity to a 100-basis point – 1% – change in yield at a specific maturity point. Key Rate Duration vs. Effective Duration The key rate duration is considered a superior metric to effective duration. It is because the…
What is Earned Income? Earned Income is perceived as payment through an employer or one’s own business. It can include the following: Wages Salaries Bonuses Tips Union strike benefits Long-term disability benefits Any other stream of legalized personal income Understanding Earned Income There are instances where income is not perceived as earned would be classified…
What is a Marketing Campaign? A marketing campaign, or a marketing strategy, is a long-term approach to promote a product or service through multiple mediums. It typically has one goal, which tends to be to an increase sales of a specific product. However, marketing campaigns don’t only have to revolve around one product; it can…
What is the Markets in Financial Instruments Directive (MiFID)? The Markets in Financial Instruments Directive (MiFID) is a European Union regulatory framework that exerts a higher degree of transparency in the operation of financial markets and standardizes disclosure requirements for investment firms and banks operating in the European Union. MiFID aims to increase investor protection…
What is Marxism? Marxism is an analytical concept concerning the social, economic, and political philosophy that examines the problematic nature of capitalism on the economy. The philosophy was named after Karl Marx, who, alongside Friedrich Engels, aimed to understand the systematically hidden dimensions in the economic realm. Marxism suggests that class conflicts, especially between the…
What is Mass Customization? Mass customization refers to a business process of providing customized goods and services that best meet individual customer’s needs. It reaps the benefits of flexibility, integration, and personalization to produce custom-made products with low unit costs at near mass production efficiency. Mass customization is a business strategy that focuses on customers…
What is Mass Production? Mass production is the manufacturing of the same standardized product lines for a prolonged period of time. It uses automation or assembly lines to facilitate the high volume production of similar products. Mass production is synonymous with continuous flow production or series reduction. The concept is identified with the rise in…
