Annual Percentage Rate – Explained

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

Update Table of Contents What is an Annual Percentage Rate?How Does an Annual Percentage Rate Work?Important DetailsNominal Interest Rate and Annual Percentage RateAnnual Percentage Rate and Annual Percentage YieldAn Illustration of Annual Percentage Yield (APY) and...

Arbitrage – Explained

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

What is Arbitrage?Arbitrage refers to subsequent buying and selling of the same type of asset in different markets to benefit from the variety in prices which each market offers. Each market tags a different price to the same or similar assets, making it more...

Appreciation (Value) – Explained

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

What is Appreciate in Value?Appreciation refers to an increase in value of an asset over time. Appreciation occurs due to different reasons, including an increase in demand or fluctuation and growth of interest rates. In accounting, appreciation refers to an upward...

American Institute of Public Accountants (AICPA) – Explained

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

What is the American Institute of Certified Public Accountants?Founded in 1887, the American Institute of Certified Public Accountants (AICPA) is the non-profit organization of certified public accountants in the country. Initially, called the American Association of...

Aggregate Demand – Explained

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

What is Aggregate Demand?Aggregate demand is a macroeconomic term that refers to the total demand or exchange for products at a particular time and at a stated price. It is the total amount of goods and services produced in an economy, and the total demand for each...

Alpha Risk – Explained

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

What is Alpha Risk?Alpha Risk refers to the risk that a null hypothesis (one which states that there is no difference between two variables) will be discarded even when it is absolutely correct. Usually known as the Type I error, the null hypothesis, in this case,...

Basis (Taxation) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is Tax Basis?Though basis may have several meanings in the finance industry, the most commonly used is the one signifying the gap or difference between the price and costs involved in a transaction at the time of ascertaining taxes. This term refers specifically...

Capitulation (Investing) – Explained

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

What is Capitulation?Capitulation occurs when an investor does not take any previous gains earned from securities, and rather sells his or her position in the diminishing stage. Though there is no specific time set for capitulation, but it usually takes place when...

Captive Pricing – Explained

by TheBusinessProfessor | Feb 23, 2025 | Principles of Marketing

What is Captive Pricing?Captive strategy refers to a type of marketing and sales-based approach that persuades or limits the customer, buying a good or product initially, to continue buying prospective products from that one vendor. Though there are lots of different...

Carriage of Goods by Sea Act – Explained

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

What is the Carriage of Goods by Sea Act?The Carriage of Goods by Sea Act, referred to as COGSA, is a U.S. based set of statutes that regulates the authority and duties of cargo shippers and ship-owners with regard to sea shipments made from and to the U.S. See 46...