What is a Memorandum of Understanding (MOU)? A memorandum of understanding (MOU) is a formal agreement between two or more parties that outlines a mutual understanding and intended course of action. Often used in the early stages of negotiations, MOUs are commonly applied in business deals, government collaborations, and international relations. While an MOU is…
What is Marxian Economics? Marxian economics refers to a school of economic thought that was derived from Karl Marx and Friedrich Engels, who were 19th-century philosophers and economists. Marxian economics arose as a critique of classical political economy and later as a critique of capitalism. Marxian economics’ critique of capitalism was mainly focused on the…
What is Mobile Banking? Mobile banking refers to the use of a mobile device to carry out financial transactions. The service is provided by some financial institutions, especially banks. Mobile banking enables clients and users to carry out various transactions, which may vary depending on the institution. Currently, mobile banking’s become easier with the development…
What is Corporate Strategy? Corporate Strategy takes a portfolio approach to strategic decision-making by looking across all of a firm’s businesses to determine how to create the most value. In order to develop a corporate strategy, firms must look at how the various businesses they own fit together, how they impact each other, and how…
What is Sandbagging? Sandbagging occurs when a person or company intentionally lowers its estimation for success with the goal of producing greater-than-expected results. In business, managers may engage in this practice as a way of reducing the expectations of shareholders and investors, knowing very well that they will exceed those expectations. Employees may also engage…
What is a Horizontal Merger? A horizontal merger occurs when companies operating in the same or similar industry combine together. The purpose of a horizontal merger is to more efficiently utilize economies of scale, increase market power, and exploit cost-based and revenue-based synergies. Reasons for a Horizontal Merger When companies undergo a horizontal merger, the…
What is Channel Stuffing? When a company forces in more products through a distribution channel than the channel is capable of selling, its sales figures become inflated. The practice is known as Channel Stuffing or Trade Loading. The practice of channel stuffing is very deceptive. Retailers are deliberately loaded with more products than they are…
What are Natural Gas Liquids? Natural gas liquids, also known as natural gasoline, are by-products of natural gas that are extracted as liquid. Chemically, natural gas liquids are hydrocarbons that are exclusively made of hydrogen and carbon. Natural gas liquids are also in the same molecular family as crude oil and natural gases. Natural gas liquids…
What is a Mortgage Originator? A mortgage originator is a person or institution that works with clients and helps them with the completion of a mortgage loan transaction. The mortgage originator is the primary lender and can act as a mortgage banker or broker. Originators fall under the primary mortgage market division and collaborate with…
What is a News Trader? A news trader can be seen as an investor or trader who makes investment decisions by following notable news announcements. News traders use market sentiment to their advantage. By keeping track of what is happening in the market and anticipating certain news releases, a news trader uses the market sentiment…
