Mandatory Redemption Schedule (Bond) – Explained

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

What is a Mandatory Redemption Schedule?The mandatory redemption schedule is a plan that specifies the point at which the issuer of a bond with a sinking fund provision is required to redeem all or part of the outstanding issues of the particular bond prior to its...

Managerial Accounting – Explained

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

What is Managerial Accounting?Managerial accounting, also known as management accounting and cost accounting, is a branch of accounting that involves the creation of reports and other necessary documents that aid a manager in the decision-making processes of running...

Make-Whole Call Provision (Bonds) – Explained

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

What is a Make-Whole Call Provision in a Bond?A make whole call provision, also sometimes known as a Doomsday Call, is a type of call provision attached to a bond that allows the borrower, or bond issuer, to pay off the remaining debt to the lender, or investor before...

Make a Market (Securities Trading) – Explained

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

What is Make A Market?Make a market is a procedure whereby a person or brokerage house is ready, willing and able to buy or sell securities at quoted bids and ask prices in order to provide liquidity to the markets. From a brokers point of view, having the capability...

Radner Equilibrium (Economics) – Explained

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

What is the Radner Equilibrium?The Redner equilibrium refers to an economic concept that suggests that if an economic decision maker has unlimited computational capacity she can allocate resources in an optimal manner. This economic concept (theory) was first...

R-Squared – Explained

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

What is R-Squared?R-squared, also referred to as the coefficient of determination, is a measure of statistics that gives relationships estimate between dependent variables movements based on the movement of the independent variable. In finance, it is a measure of...

Generation Skipping Transfer Tax – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is a Generation-Skipping Transfer Tax (GSTT)?Generation-skipping transfer tax (GSTT) refers to a federal tax that comes up when there is property transfer in the form of an inheritance or a gift to a beneficiary who should be younger than the donor by at least...

General Equilibrium Theory – Explained

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

What is General Equilibrium Theory?General equilibrium theory refers to a theory which tries to explain how demand, supply, and price functions in an economy as a whole and not just in a single or specific market. In other words, the general equilibrium analyzes the...

Lamda (Options Pricing) – Explained

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

What is Lambda?One of the “Greeks” being lambda refers to the ratio of an option’s change in dollar price to a 1% change in the anticipated price volatility (implied volatility), of an underlying asset. Lambda informs investors of how much the price...

Ladder Option – Explained

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

What is a Ladder Option?A ladder option refers to an exotic option which looks in partial profit as soon as the underlying asset hits predetermined rungs or price levels. This assures at least some profit, irrespective of the underlying asset retracing beyond the...