Imputed Cost (Implicit Cost) – Explained

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

What is an Imputed Cost?An imputed cost, also known as an implicit cost, notional cost, or implied cost, opportunity cost and implied cost. This refers to the cost incurred when an asset that can be invested is used or is serving another purpose. An imputed cost is a...

Imputed Value – Explained

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

What is Imputed Value?An imputed value of an item should not be confused with the actual value. An imputed value is assigned to an item when the actual value is not known, hence, this value is realized based on an assumption or estimation of the actual value. An...

In The Money (Option) – Explained

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

What is In The Money?In The Money (ITM) refers to the favorable option value which the option holder enjoys in an option contact. The option value is considered favorable because the option holder can buy security less than the market price in a call option and sell...

Jackson Hole Economic Symposium – Explained

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

What is the Jackson Hole Economic Symposium?The Jackson Hole Economic Symposium is an annual symposium that allows an open discussion of economic issues, stock and currency issues facing the economies of the world. It is a prominent conference that witnesses the...

Odd Lot Theory – Explained

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

What is the Odd Lot Theory?The odd lot theory refers to a technical theory that assumes that the small-scale investors dealing in the buying and selling of odd lots are wrong most of the times. Hence, when small-scale investors put a stock on sale, and the sales of...

October Effect – Explained

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

What is the October Effect?The October effect is a recognized market assumption that the value of stocks will reduce during October. It is more of a psychological belief and not a real fact. This theory is a contrast to what statisticians believe. In the history of...

Off Balance Sheet Financing – Explained

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

What is Off-Balance Sheet Financing?Off-balance sheet financing is a strategy that keeps huge capital expenditures off the balance sheet of the company so as to lower down the debt-to-equity and leverage ratios. When a huge capital expenditure would affect negative...

Offensive Competitive Strategy – Explained

by TheBusinessProfessor | Feb 23, 2025 | Strategy, Entrepreneurship, & Innovation

What is an Offensive Competitive Strategy?An offensive competitive strategy is a form of corporate strategy that involves active and consistent efforts to make and implement changes within the sector. Firms who follow this strategy are the ones who make huge...

Tax Haven – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is a Tax Haven?A tax haven refers to those places or countries that exempt foreign investors who come to do business in their countries from paying taxes. Tax liability in such countries is either very low or not there at all. Tax havens do offer a very low tax...

Tax Home – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is a Tax Home?Tax home refers to where your main regular business location is situated, post duty station or employment. In other words, your home tax is the overall area in which your workplace or business is located regardless of where your family resides....