Default (Non-Payment) – Explained

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

Update Table of Contents What is a Default?How does a Default Work?Default on Secured DebtDefault on an Unsecured DebtDefault on a Student LoanDefaulting on a Futures ContractSovereign DefaultConsequences of DefaultReal World Examples of Default What is a Default?A...

Dedication Strategy (Investment) – Explained

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

What is a Dedication Strategy?Dedication strategy is a strategy in asset management that is designed to match expected returns on investments with their anticipated subsequent liabilities. It is a cash flow matching used by investors in selecting investment...

Decoupling – Explained

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

What is Decoupling?Decoupling refers to a situation in which security prices or returns on asset behave differently from the expected pattern. When different assets classes that exhibit certain similar behaviours behave contrary to their normal correlations or...

Decision Tree – Explained

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

What is a Decision Tree?In a decision-making process, a decision tree is a graphical and statistical representation of the likely outcome of a decision. It is called a decision tree because is uses a tree-shaped diagram or a branching method to depict an action or a...

Decision Theory – Explained

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

What is Decision Theory?Simply put, decision theory is an analysis of decision-making process. It seeks to evaluate how choices are made. Decision theory is a logical study of how decisions are made in a structure or system where the decision environment is uncertain...

Decision Analysis – Explained

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

What is Decision Analysis?Decision analysis (DA) is a management technique used by corporations in evaluating choices and decisions to be made in relation to the business. DA adopts a variety of tools and strategies to determine information that are relevant to a...

Decentralized Market – Explained

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

What is a Decentralized Market?A decentralized market is a market formation that uses a variety of technical devices to help investors created a non-centralized market structure. In this market arrangement, investors can trade freely without any physical market...

Debit vs Credit (Accounting) – Explained

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

What is a Debit?In bookkeeping or accounting, a debit is a record in an account ledger that reflects an increase in assets or expenses or a decrease in a liability of equity account. It is always reflected on the left side of the account ledger. Debit is often...

De Minimus Tax Rule – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is the De Minimis Tax Rule?De Minimis tax rule, when translated means about minimal things, the concept was coined from a latin expression de minimis non curat lex. In taxation, the De Minimis tax rule is one that determines if discount on municipal bonds should...

Day Trader – Explained

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

What is a Day Trader?A day trader is a market trader that buys and sells securities within the same trading day. This trader also takes long and short position in the market that are closed before the end of a trading day. Day trading involves speculating in...