What is Société Anonyme? Société Anonyme (SA) is a public limited company (PLC) similar to a public traded company in the U.S. The company is created and operated by specific rules and regulations explained in the French Commercial Code Article L-225. The corporation must consist of a minimum of at least two shareholders, but the…
What is the Effective Tax Rate? The effective tax rate can be defined as an average rate of tax payable by an organization or a person. The average rate at which an individual’s earned and unearned income is taxed is known as their effective tax rate. An individual’s earned income can be a salary or…
What is Deposit Multiplier? The deposit multiplier is essentially the amount of money kept in the reserve account of a bank (as a requirement) to allow for continued functionality, to meet the withdrawal demands of their clients, and to limit the potential risks associated with the depletion of their supplies. The deposit multiplier is the…
What is Hot Waitress Economic Index? The hot waitress economic indicator index is an informal and one of the miserable economic indicators used to measure an economy’s well-being. The indicator is constructed by compiling the average number of people working as waiters or waitresses. According to the index, when the economy is performing dismally, the…
What is a Hot Issue? A hot issue is an initial public offering (IPO) with overwhelming public demand that sells more than its initial offer price on the first day of the public price immediately after it starts trading. Prior to the offering, the issuing company generates an interest in the offering through staged roadshows….
What is Effective Gross Income (EGI)? Effective Gross Income (EGI) is the potential gross income generated by a rental property plus other incomes and less forecasted or existing vacancies and credit costs. Rental revenue earned from a rental property is not the only variable that should be considered when assessing the value of a rented…
What is Economic Integration? Economic integration involves agreements between countries that usually include the elimination of trade barriers and aligning monetary and fiscal policies, leading to a more inter-connected global economy. Economic integration is consistent with the economic theory, which argues that the global economy is better off when markets can function in unison with…
What is the Economic Growth Rate? The economic growth rate is used to measure the growth of an economy, usually in terms of its output or gross domestic product (GDP). GDP measures the value of all goods and services produced by an economy over a certain period of time. Understanding Economic Growth Rate Nowadays, market-based…
What is Allocational Efficiency? Allocational Efficiency (or Allocative Efficiency) is a concept used in microeconomics where goods and services are distributed in an economy in a manner that is optimal and beneficial to all parties (consumers and producers). The concept is a characteristic of an efficient market, and the point of allocative efficiency is where…
