Gross Domestic Product (GDP) – Explained

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

What is Gross Domestic Product (GDP)?Gross domestic product (GDP) is the total monetary value of finished goods and services produced and offered within a country for a specific year. GDP versus GNPUnlike gross national product (GNP) that includes productions of...

Generally Accepted Accounting Principles (GAAP) – Explained

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

What are Generally Accepted Accounting Principles?Generally accepted accounting principles (GAAP) is an embodiment of rules and standards that are acceptable and practiced in the accounting industry. GAAP contains a set of accounting standards, principles, and...

Global Industry Classification Standard – Explained

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

What is the Global Industry Classification Standard?The Global Industry Classification Standard (GICS) is a standardized classification scheme in the financial and investment industry. GICS is a multi-tiered system that was created in 1991 by Morgan Stanley Capital...

Finance Charge – Explained

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

Update Table of Contents What is a Finance Charge?How Does a Finance Charge Work? What is a Finance Charge?A finance charge refers to the cost of borrowing or an interest charged on an existing credit. Finance charge is a financial term used in the United States law...

Value Added (Strategy) – Explained

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

What is Value Added?Value added can be defined generally as the increased utility that a company creates for its consumers or clients. More specifically, it refers to the extra features a company may add to a product or service to give it a sense of increased value to...

Venn Diagram – Explained

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

What is a Venn Diagram?A Venn diagram refers to an illustration that makes use of circles, be it overlapping or non-overlapping, in order to portray a relationship between finite sets of things. Venn diagram was named after John Venn in 1880. He was an English...

Value Line Composite Index – Explained

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

Update Table of Contents What is a Value Line Composite Index?How Does the Value Line Composite Index Work?The Value Line Geometric Composite IndexThe Value Line Arithmetic Composite Index What is a Value Line Composite Index?The Value Line Composite Index refers to a...

Exchange Traded Fund – Explained

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

What is an Exchange Traded Fund?An Exchange Traded Fund (ETF) is an investment fund or a security that tracks an underlying index such as stock portfolio or bonds. An ETF is traded on stock exchanges, ETFs are not shared assets, they are more like stocks that get...

Effective Annual Yield – Explained

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

What is Effective Annual Yield?An effective annual yield is defined as the total profit or returns on a bond that an investor receives. An effective annual yield differs from nominal yield or coupon rate on a bond. While nominal yield covers the interest rate par...

Degrees of Freedom – Explained

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

What are Degrees of Freedom?Degree of Freedom refers to the number of values in a statistical calculation that are free to vary from others. Hence the number of values in a study that have the freedom to differ are regarded as degrees of freedom. For a better...