Broker – Explained

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

What is a Broker?A broker is an individual in charge of transacting business deals on behalf of clients. A broker gets a commission for every transaction he or she makes. A broker can also be a firm acting as customers agent and charges a commission for the services...

Comparable Transaction – Explained

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

What is a Comparable Transaction?The comparable transaction is a method used to value a company asset for a merger as well as acquisition. Those who intend to acquire the company together with their bankers are usually interested in comparable transactions. They...

Brand Identity – Explained

by TheBusinessProfessor | Feb 23, 2025 | Principles of Marketing

What is Brand Identity?Brand identity refers to the tangible components of a brand which help customers in recognizing and differentiating the brand from its competitors. These components include color, logo, and design of the brand. Most people confuse brand identity...

Brand Awareness – Explained

by TheBusinessProfessor | Feb 23, 2025 | Principles of Marketing

What is Brand Awareness?Brand awareness is a term used in marketing that measures how well a consumer identifies a product by its mere name. Marketers use the strategy of brand awareness at the time of promoting an exclusive product, or reworking on an already...

Biased Expectations (Financial Trading) – Explained

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

What is Biased Expectations Theory?The biased expectations theory states that the total of market expectations is equivalent to the future value of rates of interest. In terms of foreign exchange, it showcases that forward rates of exchange that are related to the...

Basis Point – Explained

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

What is a Basis Point?Basis point (BPS) is a commonly used unit for measuring interest rates as well as other percentages used in the finance sector. One basis point tells how much percentage change a financial instrument has experienced. It is equivalent to 0.01% or...

Bear (Investor) – Explained

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

What is a Bear (Investor)?A bear is a term used for an investor who aims to be in a profitable position with a fall in stock prices in the market. Bears are usually considered to be pessimistic regarding a specific market condition. For instance, if an investor...

Below Par – Explained

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

What is Below Par?Below par is a concept used for a bond in case its market price is lower than its par or face value, that is $1000 in most of the cases. Since the price of bonds is ascertained as a specific percentage of principal value, any price that is lower than...

Pent Up Demand – Explained

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

What is Pent Up Demand?Pent up demand is a build-up of demand for goods and services in an economy where consumers are unable or unwilling to make purchases to satisfy the demand at the present time. Pent up demand happens during periods when consumers are reluctant...

Perfect Competition – Explained

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

What is Perfect Competition?Perfect competition is a type of market structure where many companies or firms are selling the same product. Is there a Such Thing as Perfect Competition? In the real world, there is no such thing like perfect competition. Firms with huge...