What is an Automatic Stabilizer? The term automatic stabilizer refers to a fiscal policy formulation that is designed as an immediate response to fluctuations in the economic activity of a certain country. The normal operation of the tools is such that no additional authorization is required by policymakers or the governments. The measures get automatically…
What is the Automated Customer Account Transfer Service (ACATS)? The Automated Customer Account Service (ACATS) is an electronic system in the U.S. that allows the smooth transfer of financial securities of a customer from the trading account of one institution to the trading account at another. The institutions are usually brokerage firms or banks. Many…
What is Make To Stock (MTS)? Make to Stock (MTS) is a conventional production technique wherein producers produce commodities on a large scale in accordance with anticipated consumer demand. Some of the commodities are put up on the shelves of the shop for customers to purchase, and the rest is stored as inventory. MTS production…
What is Make To Order (MTO)? Make to Order (MTO) is a production technique in which producers start manufacturing a product only after the customer places an order for it. In such a case, commodities are produced in a customized manner according to the specifications of the customer. The MTO production technique is most suitable…
What are Managed Futures? Managed futures is a subclass of alternative investment strategies used by large funds and institutional investors to achieve both portfolio and market diversification. With the ability to take both long and short positions, managed futures are diversified, highly-flexible, liquid, transparent, ideal risk management tools with the potential to profit from rising…
What is Available Balance? An account holder’s available balance is the amount of funds in their account that can be accessed immediately. It can be thought of as the quantity of funds available for withdrawal. It accounts for any funds that have been placed on deposits and pending transactions that have been authorized by the bank…
What is Business Writing? Business writing is a type of writing that is used in a professional setting. It is a purposeful piece of writing that conveys relevant information to the reader in a clear, concise, and effective manner. It includes client proposals, reports, memos, emails, and notices. Proficiency in business writing is a critical…
What is the CBOE Nasdaq Volatility Index (VXN)? The CBOE NASDAQ Volatility Index (VXN) is a measure of market expectations of near-term volatility conveyed by NASDAQ-100 Index (NDX) options prices. It measures the market expectation of 30-day volatility based on the NASDAQ-100 options. The CBOE is the only organization responsible for the calculation and dissemination…
What is Predatory Pricing? A predatory pricing strategy, a term commonly used in marketing, refers to a pricing strategy in which goods or services are offered at a very low price point, with the intention of driving out competition and creating barriers to entry. In contrast to loss leader pricing, predatory pricing is aimed toward…
