One Third Rule (Economics) – Explained

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

What is the One Third Rule?The one-third rule gives an estimate about the change in the productivity and effectiveness of labor owing to changes in capital. In other words, this rule enables one to figure out how changes in technology or capital will affect the...

One-Tailed Test – Explained

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

What is a One-Tailed Test?One-tailed test, also called directional test or directional hypothesis, is a test widely used in statistics to determine if the critical region of a distribution is in one direction, or one-sided so as to know if its value is either less or...

On Neck Pattern – Explained

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

What is an On Neck Pattern?The on neck pattern refers to the situation when a bullish candle follows the bearish candle, and the close price of the former is quite close to the close price of the latter. This two-way candlestick structure exhibits a bearish...

Market Order – Explained

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

What is a Market Order?A market order refers to an instruction to buy or sell a security immediately (at the current price). A market order does guarantee execution. However, it does not guarantee the price at which it will be sold. The execution usually happens...

Market Leader – Explained

by TheBusinessProfessor | Feb 23, 2025 | Principles of Marketing

What is a Market Leader?A market leader refers to a firm with the largest share or also with the highest profitability margin in specific goods or service industry. A market leader has a tendency of using its dominance to influence the direction which the market takes...

Market Exposure – Explained

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

What is Market Exposure?Market exposure refers to the percentage of a portfolio, invested in a given type of stock, industry or market sector. It can also be defined as the amount of money which has been invested in specific security type or in an industry, expressed...

Market Efficiency – Explained

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

What is Market Efficiency?Market efficiency is a metric used to measure how far market prices incorporate all the suitable, available information. In case the markets happen to be efficient, then it means that all the information is already integrated into prices and...

How to Negotiate Effectively

by TheBusinessProfessor | Feb 23, 2025 | Business Communications & Negotiation

What are the Steps to Learn to Negotiate Effectively?There is no single method, process, or procedure for negotiating or learning to negotiate effectively. Below are a list of steps that can facilitate the negotiation learning process. Step 1. Prepare Preparation is...

Yield Basis – Explained

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

What is a Yield Basis?The yield basis of a security or financial instrument is the yield percentage attributed to it rather than its dollar value. Fixed income security such as bond carry yield percentage instead of carrying their dollar value. With the yield basis,...

X-Efficiency – Explained

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

What is X-Efficiency?X-Efficiency refers to the behavior, performance and efficiency that traders and firms maintain in imperfect competition. In a perfect market competition, elements of monopoly do not exist in the market and the prices of commodities are not...