What is Market Index? Market index refers to a portfolio of securities that represent a particular section of the stock market. The securities that are part of a particular index often come with certain characteristics. What is Index Methodology? Index methodology is a hypothetical portfolio that derives its value from the values of its underlying…
What are Market Dynamics? Market dynamics refer to the forces that impact prices, supply and demand, and the behavior of consumers and businesses. These forces create pricing signals, influencing how companies set prices, allocate resources, and adjust to shifts in consumer preferences, competition, and economic conditions. Changes in market behavior stem from various factors, including…
What is Market Exposure? Market exposure refers to the absolute amount of funds or the percentage of a portfolio that is invested in a given security, or a bundle of securities that are part of the same industry or market sector. It is usually expressed in the form of a percentage of the total securities…
What is the Stock Market Capitalization-to-GDP Ratio? The stock market capitalization-to-GDP ratio refers to a metric that is used to evaluate whether or not a given market is valued accurately in accordance with its historical average. The ratio can be calculated for a specific market, such as the London Stock Exchange (LSE), or can even…
What is Manufacturing Resource Planning? Manufacturing resource planning is a system that is used to effectively plan the use of a manufacturer’s resources. It enables manufacturers to develop a precise production schedule for the future that minimizes costs and maximizes the use of the resources available at their disposal. Sales forecasting helps a manufacturer estimate…
What is Market Breadth? Market breadth refers to a set of technical indicators that evaluate the price advancement and decline of a given stock index. Market breadth represents the total number of stocks that are increasing in prices as opposed to the number of stocks that are undergoing a decline in their prices. The stocks…
What is Market Cycle? Market cycle refers to economic trends observed during different types of business environments. It is also known as a stock market cycle, wherein a given security, or multiple securities belonging to the same class of assets, perform better than others. It can be because the prevailing market conditions may be suitable…
What is Market Depth? Market depth refers to the ability of the market to sustain a substantially larger order without making an impact on the security’s market price. Usually, while calculating market depth, trading within one particular security is considered. Within the trades, the total breadth and the level of open orders made are considered….
What is Marital Property? The legal term marital property refers to the property that is acquired by either or both parties during the course of a marriage. Property that is held by an individual part of a married couple is considered to be separate from marital property. Similarly, inheritance or any third party gifts made…
What is Market Basket? The term market basket refers to a bundle or group of products that can be indicators of the overall performance of a specific industry, sector, or market segment. Market baskets can be classified such that they enable traders and investors to track the performance of a given sector. The most common…
