In business, a trading company (trading enterprise) primarily engages in commercial activities.
A budget deficit occurs when an individual or organisation, such as a company or government, expects to spend more money than it receives in revenue. This includes all forms of income, such as taxes, tariffs, customs, or the sale of goods and...
Several well-known over-the-counter (OTC) markets exist, offering avenues for trading various financial instruments directly between parties without the need for a centralized exchange. One significant example is the OTC market for derivatives,...
Highly liquid stocks. Stocks that are extremely liquid. Consider the bid-ask spread on 3M Company (MMM), a popular large-cap stock. A current look (and the bid-ask spread changes all the time) shows the stock's bid at $189.24 and the ask at $189.28,...
Cyclical stocks are those that are expected to fluctuate in response to prevailing economic conditions. That is, cyclical stock prices are more likely to rise in the presence of a healthy economy and fall in the absence of one. In other words,...
The price of oil stocks is influenced by a myriad of factors that span economic, geopolitical, and industry-specific dynamics. Firstly, global supply and demand dynamics play a crucial role. Fluctuations in oil production levels, whether due to...
Each country has its own set of healthy inflation levels, which is commonly 2%. As the economy grows, the amount of money in circulation must also increase. Both the central banks and governments need to maintain it at a healthy level. Demand and...
Emotional influence plays a significant role in financial decision-making, as elucidated by principles in behavioral finance. Unlike traditional finance theories that assume rational decision-making, behavioral finance recognizes that human emotions...
Zero-coupon bonds offer unique advantages and disadvantages compared to other types of bonds, primarily stemming from their characteristic of not paying periodic interest.
The strength of a currency can be affected by the stability of a country's economy. In countries with high growth rates, products and services will be in greater demand. It will also serve greater job possibilities for people and a more appealing...