Company Risk (Investment) – Explained

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

What is Company Risk?Risk is the possibility of an undesirable outcome. Investors in a company hope that a company will continue to perform as expected or more favorably. There is, however, a risk that the company will perform less favorably. This is known as company...

Comparative Market Analysis – Explained

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

What is a Comparative Market Analysis?Comparative market analysis is the process of attributing a value to real estate based upon the valuation given to similar or comparable properties. Comparable properties are those with similar characteristics, such as location,...

Plowback Ratio – Explained

by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting

What is a Plowback Ratio?The plowback ratio is a simple metric showing the ratio of earnings retained by the company (i.e., not paid out as a dividend) to the total earnings. The formula is as follows: Plowback Ratio = 1 – Payout Ratio (Earnings Per Share /...

Bay Street – Explained

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

What is Bay Street?Bay Street is the name used for Canadas Financial District in Toronto. It is similar to how Wall Street is used to refer to the US financial district in New York. The Toronto Stock Exchange is located very near Bay Street. It has the largest number...

Monthly Active Users – Explained

by TheBusinessProfessor | Feb 23, 2025 | SEO, Social Media, Direct Marketing

Update Table of Contents What is Monthly Active Users?How is Monthly Active Users Used?Academic Research on Monthly Active Users (MAU) What is Monthly Active Users?The number of individuals using an application or visiting a website per month (Monthly Active Users) is...

7Ps of Marketing – Explained

by TheBusinessProfessor | Feb 23, 2025 | Principles of Marketing

What are the 7 Ps of Marketing?The four Ps are: Product Price Placement Promotion These are key factors or attributes to consider when marketing a company’s value proposition – generally a product. They are commonly known as the marketing mix.Other...

Comparable Company Analysis – Explained

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

What is a Comparable Company Analysis?Comparable company analysis is the process of valuing a company based upon the value of other companies that have similar characteristics. The comparable metrics are generally known as comps. To be comparable companies, the...

Wage & Price Stickiness – Explained

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

What is Wage and Price Stickiness? Keynes also pointed out that although AD fluctuated, prices and wages did not immediately respond as economists often expected. Instead, prices and wages are “sticky,” making it difficult to restore the economy to full employment and...

Average Return – Explained

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

What is an Average Return?The average return is the amount the average amount that an asset returns to the holder over a specified period of time. The average return can be calculated as the arithmetic mean or geometric mean. Arithmetic means is the sum of all returns...

Coupon Rate – Explained

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

What is a Coupon Rate?A coupon rate refers to the annual interest amount that a bondholder receives usually based on the bonds face value. A coupon rate is the bond interest an issuer pays to a bondholder on its issue date. Any change in the value of the bond changes...