Adaptive Market Hypothesis – Explained

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

What is Adaptive Market Hypothesis?Adaptive market hypothesis is a model which combines the principles of the effective market hypothesis with those of behavioral finance. This theory was suggested by MIT Professor Andrew Lo in 2004. The behavioral finance was...

Two-Bin Inventory Control – Explained

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

What is Two-Bin Inventory Control?The two-bin inventory control, often referred to as Kanban, is a model or system used in determining when resources or inputs should be restocked or recharged. This system is mostly used in the manufacturing sector. Items in the...

Traveling Auditor – Explained

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

What is a Traveling Auditor?A traveling auditor is any individual who spends an amount of time conducting audits in distant areas. This individual gathers the accounting data of a firm or company to file financial status reports and locate any form of misconduct in...

Unitized Endowment Pool – Explained

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

What is a Unitized Endowment Pool?A Unitized Endowment Pool (UEP) is an endorsement investing in which diverse endowments can invest in the same category of assets. A UEP is similar to mutual funds, investors in UEP receive returns in their investments monthly. New...

Yellow Sheets – Explained

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

What are Yellow Sheets?A yellow sheet is a statement (bulletin) that contains all the necessary information about corporate bonds being traded on the OTC (over-the-counter). Debt securities that a corporation issues which are meant to be sold to investors are called...

Workable Indication (Bonds) – Explained

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

What is a Workable Indication?A workable indication refers to a nominal quote used in the municipal bond market specifying the price at which a trader is desirous of either buying or selling a specific security. It is different from a firm quote as one can make...

Advance Rate – Explained

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

Update Table of Contents What is an Advance Rate?How Does an Advance Rate Work? What is an Advance Rate?An advance rate is a percentage of the value of the collateral set by the lender, up to which the lender agrees to extend the loan amount. When a lender provides a...

Unit of Production Method (Depreciation) – Explained

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

What is the Unit of Production Method of Depreciation? The Unit of Production Method is a depreciation method that measures the depreciation of an asset based on its usage and not just passage of time. When the unit of production method is used to gauge depreciation...

Welfare Economics – Explained

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

What is Welfare Economics?Welfare economics emphasizes on the effective utilization and distribution of resources, and further studies what impact this distribution holds on social welfare. This is directly associated with the analysis of how income is distributed,...

Empirical Rule – Explained

by TheBusinessProfessor | Feb 23, 2025 | Research, Quantitative Analysis, & Decision Science

What is an Empirical Rule?The empirical rule refers to a statistical rule that mentions that all data or information is covered around three standard deviations of the average in a normal distribution. It states that the first standard deviation covers 68% data, the...