Surplus Spending Unit – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is a Surplus Spending Unit?A surplus spending unit is a term used for a unit where the revenue or income is equal to or more than the amount spent on consumption for a period of time. There is always a surplus left after it has covered its basic expenses for...

Straddle (Options Trading) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is a Straddle in Options Trading?A straddle is an options trading strategy. A trader buys/sells the Call and Put options for the same underlying asset simultaneously at a certain point in time to use a straddle, provided both options have the same expiry date and...

Skyscrapper Effect (Economics) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is the Skyscraper Effect?The skyscraper index or Skyscraper effect, which was developed by an economist named Andrew Lawrence, shows a correlation between the construction of the highest building in the world and the business cycle. According to Business Cycle,...

Stop-Limit Order – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is a Stop-Limit Order?A stop-limit order which is used to mitigate risk can be defined as a conditional kind of stock trading incorporating the features of a stop order and a limit order over a specified time frame. The stop price is simply the price triggering a...

Standard and Poor’s Depositary Receipts (SPDR) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is a Standard and Poor’s Depositary Receipt?Spider is a term which designates a group of Exchange-Traded Funds in which the Standard & Poor’s Depositary Receipt is a part of. This Exchange-Traded Fund is controlled by the State Street Global...

Staple Thesis – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is a Staple Thesis?The staple thesis was developed because of the noticeable economic development in Canada, but the thesis can also be applied in different countries. The thesis follows that traditional commodities or staple products contribute immensely to the...

Agricultural Sector Investment Program (ASIP) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Global Business, International Law & Relations

What is an Agricultural Sector Investment Program (ASIP)?The Agricultural Sector investment (ASIP) was a project that started in March 1995 and ended in 2001. It was developed by the World Bank Group and 50% of its funds was primarily directed at agricultural...

Capacity Management – Explained

by TheBusinessProfessor | Feb 23, 2025 | Operations, Project, & Supply Chain Management

What is Capacity?Capacity is the ability, based upon the need for resources (such pastime, people, systems, equipment, etc.) to carry out an objective (such as, serve customers, process information, or make products) to the extent required.What is Capacity...

Formula Method (Swaps) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is the Formula Method?There are several methods for calculating termination payments, there is the Indemnification method, the agreement value method, and the Formula method as established by the International Swaps and Derivatives Association. The formula method...

Bubble Theory – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is Bubble Theory?The bubble theory refers to a financial hypothesis involving a rapid upward movement of security prices followed by a sudden sharp price fall. This forces investors to withdraw from overvalued assets. The assumption is that the prices of assets...