Weighted Average Market Capitalization – Explained

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

What is Weighted Average Market Capitalization?Weighted average market capitalization is a form that involves the formulation of stock market index on the basis of market capitalization of the stocks of index. Big organizations would hence receive a bigger chunk of an...

Long-Term Asset – Explained

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

What is a Long-Term Asset?A long-term asset, often known as Plant Assets,  is an investment that a company preserves and does not convert into liquid cash for a period of about one or more years. For example, if a company operates on a cycle that is more than a year,...

Moody’s – Explained

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

What is Moody’s?Moodys is an American credit rating business company that provides practices, solutions, and tools for managing and measuring financial risks. John Moody is the founder of Moodys, and his main aim for starting the corporation in 1909 was to...

Mid-Cap Company Shares – Explained

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

What are Mid-Cap Company Shares?Mid-cap refers to public company shares that have a market capitalization or market value between $2 and $10 billion. As the name implies, it falls between large-cap and small-cap. Categories of large-cap, small-cap, and mid-cap are...

Overnight Rate – Explained

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

Update Table of Contents What is the Overnight Rate?How Does the Overnight Rate Work?Basics of the Overnight RateEffects of the Overnight Rate What is the Overnight Rate?The overnight rate is the interest rate that credit institutions charge each other when lending...

Overhead – Explained

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

What is Overhead?In business and economics, overhead or burden costs refers to the day-to-day expenses of running a business. Unlike raw materials and labor, which directly affect the product costs, overhead expenses do not directly affect the prices of a particular...

Outside Sales – Explained

by TheBusinessProfessor | Feb 23, 2025 | Sales

What is Outside Sales?Outside sales refer to the company’s sales representatives who sell products and services to clients in the filed through face-to-face interactions. The working environment of outside sales representatives is informal, as it is outside the...

Lipstick Effect – Explained

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

What is the Lipstick Effect?Lipstick effect is a term used to refer to a situation where consumers still manage to buy a luxury product like lipstick, amid an economic crisis. When there is a recession, consumers are expected to focus their purchase on goods that...

Capital Gains Tax – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is a Capital Gains Tax?Capital gains tax is a type of tax collected on capital gains that are profits earned from the asset sales such as stocks, metals, bonds, and property. The profit arises from ascertaining the difference between the selling price and the...

Predatory Lending – Explained

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

Update Table of Contents What is Predatory Lending?How Does Predatory Lending Work?Predatory lending vs Redlining What is Predatory Lending?Predatory lending involves immoral activities that a lender carries out to coerce, influence, and push a borrower for a loan...