What is The North Atlantic Treaty Organization (NATO)? NATO is a military alliance among 28 member countries. Numerous other countries also participate in NATO programs to promote peace and international dialogue. Member nations agree to provide collective support to member nations in the event of attack by non-member nations. NATO also provides a j...

What is an Open-End Fund? A mutual fund that can issue an unlimited number of shares is called an Open-End Fund. Mutual Funds provide a convenient investment opportunity for investors as a majority of them are Open-End Funds. When the number of shares is too large to manage, the mutual funds issuing firm/management can decide to cap the limit. In ex...

What is a Basket Purchase? A basket purchase is also called a lump sum acquisition, this is the purchase of many assets as a group. When an investor purchases a basket of assets, it means that in a single transaction, the investor is able to buy many assets as one group. This basket of purchase might also be different securities, equipment, property...

What is a Dutch Auction? A Dutch Auction is an auction process where the auctioneer or seller starts with a high asking price and then lowers it incrementally or in stages until there is a bid for the item (or batch being sold). This is most appropriately referred to as a Simple Dutch Auction. Can you Sell Multiple Items in a Dutch Auction? When the...

Table of Contents What is the American Economics Association (AEA)? The American Economics Association is a non-profit organization located in Nashville, Tennessee which is made up of university professors in the field of Economics. Since starting in 1885 they now consist of over 20,000 members. What does the American Economics Association Do? Annua...

What is a Bill Of Sale? A bill of sale is a legal document that evidences when a good is sold by a seller to a buyer. The bill of sale is a legal proof that the ownership of a property or asset has been transferred from one party to another. This bill of sale generally contains the date the purchase or transfer of ownership was completed, the amount...

What is Deferred Income? Deferred income is the advance payment received for a service or product yet to be delivered. The deferred income is recorded as a liability in the balance sheet and it remains there until the product or the service is delivered to the client. Deferred income is also known as deferred revenue, unearned revenue or unearned in...

What is Diversification Strategy? In other articles, we discussed various generic strategies to achieve growth in a given market or industry. Notably, in the Ansoff Matrix lecture, we introduced the concept of diversification as a growth strategy.  Diversification is a strategy used to expand market share or enter new markets by launching or acquiri...

What is OPEC? The Organization of the Petroleum Exporting Countries (OPEC) is an intergovernmental organization established to coordinate, unify, and solidify petroleum policies among member countries.  OPEC was established in September 1960 between 5 oil-producing countries namely; Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. The membership of ...

What is a Plant Patent? A plant patent refers to an intellectual property right which safeguards a new and unique plants major features from being sold, copied, or utilized by others. A plant patent is capable of assisting an inventor lock in higher profits during the period of patent protection by preventing competitors from making use of the plant...