by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What are Annual Holdings Turnover?Annual holdings turnover refers to the percentage rate at which an exchange-traded fund or mutual fund replaces its holdings on investment every year. Turnover involves comparing assets under management to the security holdings...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is an Order Protection Rule?Order protection rule is a National Market System (RMS) regulation meant to ensure that investors get execution price equivalent to all exchanges trading in the security. In other words, it protects investors from getting inferior...
by TheBusinessProfessor | Feb 23, 2025 | Operations, Project, & Supply Chain Management
What is Business Process Redesign?Business process redesign concerns a complete overhaul of key business processes with the purpose of improving company performance measures. Processes might include production, manufacturing, sales, and customer service, etc. BPR...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Heckscher-Ohlin Model?The Heckscher-Ohlin model, otherwise known as the H-O model or 2x2x2 model, is a mathematical theory used in international trade to evaluate the export pattern of a country relative to the natural resources at their disposal. The...
by TheBusinessProfessor | Feb 23, 2025 | Research, Quantitative Analysis, & Decision Science
What is Nonlinearity?Nonlinearity refers to a situation in which variables do not exhibit a linear relationship, but rather exhibit changes that are not proportional to the change of the input. Nonlinearity is studied in mathematics, statistics, and science and is...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is the Stock Market Capitalization-to-GDP Ratio?The stock market capitalization-to-GDP ratio is a ratio that measures the overall value of all publicly traded stock in a market in comparison to the country’s gross domestic product (GDP). This ration is...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is a Revenue Cap Regulation?The revenue cap regulation is a government regulation that seeks to control the amount of revenue that firms and operators in an industry can earn, especially in an industry with minimal or no competition. This regulation permits firms...
by TheBusinessProfessor | Feb 23, 2025 | Research, Quantitative Analysis, & Decision Science
What is a Rescaled Range Analysis?Rescaled range analysis is a statistical technique used in assessing the nature and analyze the variability of a time series. Harold Edwin Hurst, a British hydrologist developed the rescaled range analysis. At the time the analysis...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Ricardian Equivalence?The Ricardian Equivalence is an economic proposition that holds that when there is increased debt-financed spending by the government in order to stimulate the economy, demands remain unchanged. Hence, this theory suggests that...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is Residual Equity Theory?The residual equity theory says that common shares make up the only true equity of a company. Preferred shares should be treated like a liability. Thus, the value of stockholder equity equals only the common shares. Residual Equity =...