What is Range? In statistics and mathematics, range is the difference between the largest and smallest values in a dataset. The range is one of the measures of dispersion of data. Range in Finance In finance, the range is defined as a difference between the low and high prices of a security over a certain…
What is a Market-on-Close (MOC) Order? A market-on-close (MOC) order refers to a market order that is not subject to a limit. Traders execute market-on-close orders as close to the closing price of a stock as possible. It is placed either at the exact time of the market closing or slightly after the market closes….
What is Market Research? Market research refers to the process through which a company can determine the viability of a new product. It can be a new product or service or a variation or upgrade of an existing product. Through market research, a company can discover the target market and collate feedback on the level…
What is Market Penetration? Market penetration refers to a quantitative measure of the sales of a product or service compared to the total estimated market expressed as a percentage. It is useful in the development of strategies aimed to increase the total share of those products or services. Calculating market penetration forces managers to ascertain…
What is a Type II Error? In statistical hypothesis testing, a type II error is a situation wherein a hypothesis test fails to reject the null hypothesis that is false. In other words, it causes the user to erroneously not reject the false null hypothesis because the test lacks the statistical power to detect sufficient…
What is National Income Accounting? National income accounting refers to the government bookkeeping system that measures the health of an economy, projected growth, economic activity, and development during a certain period of time. It helps in assessing the performance of an economy and the flow of money in an economy. The double entry system principle…
What are Non-GAAP Earnings? Non-GAAP earnings are earnings measures that are not prepared using GAAP (Generally Accepted Accounting Principles) and are not required for external reporting or other public disclosures. However, non-GAAP earnings are sometimes reported in company filings with the Securities and Exchange Commission (SEC) when management feels it will be useful for stakeholders,…
What is the Minimum Efficient Scale (MES)? The minimum efficient scale (MES) is the point on the LRAC (long-run average cost) curve where a business can operate efficiently and productively at the lowest possible unit cost. The minimum efficient scale can also be a range of output for which the company receives constant returns to…
What is the National Commodities and Derivatives Exchange (NCDEX)? The National Commodities and Derivatives Exchange (NCDEX) is an agricultural commodity exchange in India. It consists of independent directors and offers an independent online platform for commodity trading. It was incorporated on April 23, 2003, as a public limited company under the Company Act 1956 and…
What is an Audit Committee? An audit committee is a sub-group of a company’s board of directors responsible for the oversight of the financial reporting and disclosure process. To be successful, the audit committee should understand the organization’s processes and internal controls. The audit committee must coordinate with the management team, independent auditor, and internal…
