Net Operating Income – Explained

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

What is Net Operating Income?All revenue generated by a company after the operating expenses are deducted gives the Net Operating Income (NOI) of an investment or company. NOI is used in accessing how profitable a business or an investment is. Usually, this...

Neoclassical Growth Theory – Explained

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

What is Neoclassical Growth Theory?In economics, the neoclassical growth theory is an economic model that maintains that the stability of economic growth rests on three major factors: the availability of capital, the availability of labor, and State of technology....

Negative Amortization – Explained

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

Update Table of Contents What is Negative Amortization?How Does Negative Amortization Work? What is Negative Amortization?Negative amortization occurs when the loan payment by a borrower is less than the interest that has accumulated over a period of time, when this...

Nationalization – Explained

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

What is Nationalization?Nationalization is when a company or an industry which was formerly privately owned is taken over by the government. This can be with or without paying any compensation to the private owners. 

Nash Equilibrium – Explained

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

What is the Nash Equilibrium?The Nash equilibrium is a popular gaming theory that was developed by John Forbes Nash, a mathematician. This theory presents the optimal solution in a game where both players are non-cooperative due to lack of incentive to change their...

Narrow Basis (Stocks) – Explained

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

What is a Narrow Basis?A narrow basis describes the proximity or convergence between the spot price of a commodity and the price of that same commodity in a futures contract. In a futures contract, the price for a commodity is set at a future date. The present price...

Naked Put – Explained

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

What is a Naked Put?A naked put is a strategy peculiar to put options contract, this strategy is one in which an investor writes or sell a put option without holding any short position in the underlying contract. Using a naked put, an investor that holds no position,...

Embedded Option (Bonds) – Explained

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

What is an Embedded Option?An embedded option is a provision attached to bonds in which the bondholder or the issuer of the bon to carry out certain actions against the other party at some time in the future. Diverse kinds of options can be embedded into a bond, for...

Elliott Waves Theory – Explained

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

What is the Elliott Wave Theory?The Elliott Wave Theory was developed in 1933, it was developed as an approach to describing price movements in the market as well as prevalent market cycles. This theory was named after Ralph Nelson Elliott, the scholar who developed...

Electronic Communication Network – Explained

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

What is an Electronic Communication Network?An electronic communication network (ECN) is a computer-based system of trading that takes trading outside of the physical market. It is a computerized system that allows investors trade securities and other financial...