Two or more parties exchange products or services through trading. If you need gasoline for your car, you would trade dollars for it. Bartering used to be the main form of trading, where one commodity was exchanged for another, and it is still...

The primary difference between majority and minority shareholders lies in their level of ownership, influence, and control over a company. Majority shareholders own a significant portion of a company’s shares, typically more than 50%, giving them...

The most successful people are those who are able to apply their discipline to the maximum. Disciplined people always adhere to their principles. Not infrequently, that person is liked for the way he has disciplined himself, he does not waste time...

Redemption date refers to the specific date on which a financial instrument, such as a bond or mutual fund, can be redeemed or repaid by the issuer to the investor. It represents the maturity date or the end of the investment period.

The price of gold is influenced by a complex interplay of economic, geopolitical, and market-related factors. One of the primary drivers is inflation. Gold is often seen as a hedge against inflation; when inflation rises, the value of fiat currencies...

Capital stock represents the total shares of ownership in a company, including both common and preferred stock. It is a key component of a company’s equity financing and reflects the ownership stakes held by shareholders. When a company is formed...

The term "random walk theory" was coined by French mathematician Louise Bachelier, who believed that share price movements were unpredictable, much like the steps of a drunk.

An abandonment option provides flexibility to a company by allowing it to discontinue or exit a project, investment, or asset if it becomes unprofitable or no longer aligns with strategic goals. This option acts as a safeguard, enabling the company...

International trade can both positively and negatively impact a recession, depending on the nature of the trade relationships and global economic conditions. On one hand, exports can provide a boost to the economy, as they can help increase demand...

An option premium is a difference between the strike price and the current market price of the option contract. Therefore, it is the profit earned by the seller (writer) of an option contract. For in-the-money options, there are two components:...