Gross Margin – Explained

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

What is Gross Margin?Gross margin is the difference between a company’s net revenue in sales and cost of goods sold (COGS). Mathematically, gross margin can be represented as, GrossMargin = NetSales Revenue COGS. In simple terms, the gross margin is an...

Adjusted Present Value – Explained

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

What is Adjusted Present Value?Adjusted Present Value refers to the sum of net present value of an organization or a project that is totally based on equity financing and present value of financing advantages, if any. These financial benefits, when considered, provide...

Adjusted Gross Income – Explained

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

What is Adjusted Gross Income (AGI)?Adjusted gross income is ascertained from your gross income and used to ascertain how much tax you need to pay on your income. In the U.S., it is the premises for ascertaining the tax bill of a filer, and one can receive many...

Martingale System – Explained

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

What is a Martingale System?Martingale system refers to an investment system which holds that the investments dollar value continues to increase despite it experiencing successive losses. It is a system believed to help investors double up his or her profits so that...

Marshall Plan – Explained

by TheBusinessProfessor | Feb 23, 2025 | Global Business, International Law & Relations

What is the Marshall Plan?The Marshall Plan, also known as the European Recovery Program (ERP), refers to an American sponsored initiative which was created and passed in 1948 for the purpose of assisting 17 Western and Southern European countries to rebuild their...

Marketweight – Explained

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

What is a Marketweight of a Share of Stock?Market weight refers to a specific type of shares value relative to other types on a given stock market. In other words, it is a system for credit rating which approximates the current credit spreads accuracy as well as...

Market Share – Explained

by TheBusinessProfessor | Feb 23, 2025 | Principles of Marketing

What is Market Share?Market share refers to the company’s percentage of the entire sales of the market or industry in which it operates. In other words, it refers to the company’s sales amount compared to that of the overall industry. Generally, market...

Market Segmentation Theory (Finance) – Explained

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

What is Market Segmentation Theory?The market segmentation theory is the assumption that both short-term and long-term interest rates have no correlation whatsoever. In addition, the theory states that the interest rates for each different maturity segment vary. Note...

Market Risk – Explained

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

What is a Market Risk?Market risk refers to the risk where there is a possibility of an investor experiencing a decrease in value of an investment as a result of changes in financial market factors. Note that you cannot completely eliminate market risk through...

Market Power – Explained

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

What is Market Power?Market power is an economic term that refers to the ability of a company to successfully raise the prices of goods or services in the general market. In other words, when a commercial enterprise is able to influence products or services price by...