Federal Discount Rate – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is the Federal Discount Rate?How is the Federal Discount Rate Used?How Does the Federal Discount Rate Work?Federal Reserve Monetary Tools What is the Federal Discount Rate?The federal discount rate refers to the interest rate set by the...

Fed Balance Sheet – Explained

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

Fed Balance Sheet – ExplainedThe Fed balance sheet refers to the breakdown of the assets, as well as, liabilities which the Federal Reserve holds. This report lists the factors affecting the absorption and supply of Federal Reserve funds. The Fed balance sheet...

Feasibility Study (Business) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Strategy, Entrepreneurship, & Innovation

What is a Feasibility Study?A feasibility study refers to an analysis that takes every relevant factor of a project into account (legal, economic, technical, and scheduling considerations) to determine the possibility of completing the project successfully. Project...

Zero-Cost Strategy – Explained

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

What is a Zero-Cost Strategy?A zero-cost strategy is a business or trading decision that does not incur any expense. A zero-cost strategy costs an individual or business nothing while simultaneously improving operations, making processes more effective, or serving to...

Pivot (Stock Price) – Explained

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

What is a Stock Price Pivot?A pivot refers to an important price level established when a stock doesn’t break through it to the up or downside or the price breaks out past the pivot level. Most times, an instant increase in volume goes with a move through the...

Productivity (Economics) – Explained

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

What is Productivity in Economics?In economics, productivity calculates output per unit of input, like capital, labor, or any other resource and is usually calculated for the economy as one, as a gross domestic product (GDP) ratio to hours worked. Labor productivity...

Throwback Rule – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is the Throwback Rule?The throwback rule is a tax rule that allows a state to tax a corporation or business entity for the profits made in the state. Corporations, whose sales originate from certain states are subject to tax payment on those sales under the...

Theory of Price – Explained

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

What is Price in Economics?Price is what a buyer pays for a single unit (or batch) of a specific good or service. Price is a proxy for value. What is the Theory of Price?The theory of price is a theory which states that the price for goods and services is determined...

Sum of Parts Valuation – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles

What is a Sum-of-the-Parts Valuation?The sum-of-the-parts valuation (SOTP) refers to a method of valuing a firm by evaluating or assessing each of its divisions separately before their values are aggregated. This means that all the divisions or segments of the...

Stop-Loss Order (Trading) – Explained

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

What is a Stop-Loss Order?Brokers use the stop-loss order as an exit strategy, especially when the conditions of a trade are not favorable. A stop-loss order is an order used by a broker to sell a security or an investment instrument when it reaches a certain price...