Economies of Scale is an economic concept that says the efficiency of production rises as the quantity of goods produced increases.
With scale, the costs associated with production should decrease thereby allowing a company to increase profitability with more goods produced. However, in many cases the upside potential is not necessarily unlimited. A company may experience diminishing marginal returns to producing more goods.
Generally speaking, however, the larger the company, the more control they have over the cost of inputs and the more pricing power they have.
Fluctuations are represented in terms of volatility, and different types of investments experience different levels
A put option gives the owner of the option/contract the right to sell a stock at the strike price named in the contract
Government employees can defer up to $18,000, plus a $6,000 catch-up contribution for those over 50, in 2016
The Capital Market Line is a complex concept, but put simply, it is a calculation meant to give the investor/analyst...
Duration refers to the amount of time before a fixed income product will return the investment (principal and interest)
A short squeeze occurs when many short-sellers attempt to cover their positions at the same time, and it drives prices up
A liquidity ratio generally measures the amount of cash or readily available cash relative to current liabilities
Intrinsic Value is the value of a security which is “built into it.” Both options and stocks have it, but it is different
The truest definition of a Bank Draft is a check written with the certification of a customer’s bank
Fibonacci fans are drawn from a peak or a trough, using that point as the radial origin from which the fan lines are drawn