What is the Martingale Strategy? The Martingale Strategy involves doubling the trade size every time a loss is faced. A classic scenario for the strategy is to try and trade an outcome with a 50% probability of it occurring. The scenarios are also called zero expectation scenarios. For a situation with an equal probability, such…
What is Externality of Production? Externality of production is a popular term in economics that refers to the cost or benefit that accrues to an unknowing third party from the production of a good or service. Externalities often occur when the price of a good determined by the market forces of demand and supply does…
What was the Microsoft Antitrust Case? The Microsoft antitrust case came to be one of the high-profile cases a few decades ago. In the 1990s. U.S. federal regulators sued Microsoft, which was at that time the world’s leading software company. The Federal Trade Commission launched an investigation as a response to the rising market share…
What is a Negative Return? A negative return represents an economic loss incurred by an investment in a project, a business, a stock, or other financial instruments. As a result of an investment failure, a negative return happens when the total amount of money received over the investment horizon is less than the capital invested,…
What is Voluntary Termination? Voluntary termination occurs when an individual decides to leave the organization where they are currently employed. They may be leaving the job market or may leave to start a new job or career at a different institution. Voluntary termination can occur when an individual is fired from their position. We will…
What are External Economies of Scale? External economies of scale refer to factors that are beyond the control of an individual firm, but occur within the industry, and lead to such a cost benefit. For example, if the government imposes higher tariffs on the import of a certain good, then it is beneficial for all…
What are Explicit Costs? Explicit costs are business operating costs, or expenses, that are easily quantifiable and identifiable. Also referred to as accounting costs, the explicit costs of a company are recorded in its books (accounting ledgers) and become listed expenses on the company’s financial statements – such as its balance sheet and income statement….
What is Financial Statement Manipulation? Financial statement manipulation refers to the practice of using creative accounting tricks to make a company’s financial statements reflect what the company wants its performance to look like rather than its actual performance. Despite numerous steps taken by legislatures and regulatory bodies – such as the Securities and Exchange Commission…
What is the Knowledge Economy? The knowledge economy is focused on the essential importance of human capital in the 21st-century economy. The rapid expansion of knowledge and the increasing reliance on computerization, big data analytics, and automation are changing the economy of the developed world to one that is more dependent on intellectual capital and…
What are Krugerrands? Krugerrands are gold bullion coins minted in South Africa. The Krugerrand was first minted in 1967, a co-production of the South African Mint and the Rand Refinery, a precious metals refining company. The coin’s name is derived from the name, Paul Kruger, and the South African rand, the basic unit of currency…
