What is Demonetization? Demonetization is an economic process in which a country’s currency unit is no longer legal tender. A currency unit is what we would commonly refer to as physical money, such as banknotes and coins. When demonetization occurs, the country’s currency unit is essentially worthless, as it can no longer be used to…
What is a Developed Economy? A developed economy is a region, typically a country, with a high level of wealth and resources available to its residents or citizens. What Does “Developed” Mean? The notion that an economy is “developed” is not rigorously defined and is instead based on the consideration of a multitude of factors….
What is a Direct Cost? Direct cost is an accounting term that describes any type of expenditure that can be directly attributable to a cost object. Cost objects can take many different forms, which we will analyze below. Direct costs are correlated and causative of an object. Direct cost is a relatively simplistic term and…
What is a Direct Stock Purchase Plan (DSPP)? A Direct Stock Purchase Plan (DSPP) is a way for individuals to buy stocks directly from a company rather than through a brokerage. Typically, investors purchase stocks through brokerages, such as banks or online investment platforms. In this case, the brokerage acts as a middleman between the…
What is Expansionary Policy? Expansionary policy is a type of macroeconomic policy that is implemented to stimulate the economy and promote economic growth. Expansionary policies are used by central banks in times of economic downturns to reduce the adverse impact on the economy. Types of Expansionary Policy There are two main types of expansionary policy…
What is a Budget? A budget is an estimation of future revenues and expenses for a certain period. The budgeting process creates plans to make expenses or allocate resources. It can be made for an individual, project, business, government, or other organization. Understanding Budgets Based on the concept of limited resources, it is common for…
What is a Day Trader? A day trader is someone who actively buys and sells financial instruments, such as stocks or currencies, throughout the trading day. All positions are opened and closed within the same market session, preventing exposure to overnight risks. A day trader, meaning they avoid holding positions after the market closes, minimizes…
What is an ASCOT? The term ASCOT is short for Asset Swapped Convertible Option Transaction. It is an American-style call option to buy back a convertible bond. It falls under the category of financial products called structured products, which are a combination of two or more financial products combined to meet the needs of the…
