Tag: market

Buyer Bargaining Power (one of Porter’s Five Forces)

See also: Porter’s Five Forces of Competition Threat of New Entrants Intensity of Rivalry Threat of Substitutes Supplier Power Supplier Power Analysis Buyer Power Definition Porter’s Five Forces of buyer bargaining power refers to the pressure consumers can exert on businesses to get them to provide higher quality products, better customer service, and lower prices.

Read More

Black Swan Events

You may have heard the term “Black Swan Event“, particularly recently.  But what exactly is a black swan event and what can, and should, we learn from them? The notion of black swan events was first set forth by Nassim Nicholas Taleb. Taleb, a finance professor and former Wall Street trader, wrote about this concept

Read More

Put Option

See Also: Call Option Synthetic Stock Future Value Intrinsic Value – Stock Options Purchase Option Put Option Definition A put option is the right for an investor to sell an asset at a pre-determined exercise price on a certain date known as the put option expiration. Put Option Explained A put option gives a holder

Read More

Histogram Definition

The Histogram Definition The histogram definition is a graphical representation of the density or frequencies over a certain data set. Many usually use histograms graphs in finance for market analysis. Histograms Explanation A histogram exposure is related to a data set usually in finance. The data set is usually the entire existence of the market

Read More

Baby Bonds

See Also: Coupon Rate Bond Non-Investment Grade Bonds (Unsecured Debentures) Par Value of a Bond What is a Bond? Yield to Maturity of a Bond Baby Bonds Definition The baby bonds definition is completely the same as a normal bond except for the fact that the face values are less than $1,000. They typically come

Read More


See Also: Arbitrage Pricing Theory Market Positioning Capitalization Inventory to Working Capital Analysis Mining the Balance Sheet for Working Capital Arbitrage Definition Arbitrage is the practice of profiting from the mispricing of an asset that trades in multiple markets. For arbitrage to be possible, an asset must trade in at least two different markets. If the same

Read More

Financial Ratios

Monitoring a company’s performance using ratio analysis and comparing those measures to industry benchmarks often leads to improvements in company performance. Not to mention these ratios are often part of loan covenants. The following article provides an overview of the 5 categories of financial ratios and links to their description and calculation. Use the following

Read More

Durability Bias in Business

Durability bias in business is the tendency of people to project recent trends or occurrences into the future. If it happened in the past, then it must happen in the future. The term is often used in behavioral science and forecasting. Durability Bias in Business How does durability bias apply to business? Often business professionals

Read More

Economic Reset

I just returned from the Microsoft Worldwide Partner Conference 2009 in New Orleans. At the conference I heard Steve Ballmer discuss the direction of the economy over the next several years. He believes that the world economy is going through an “economic reset”. Economic Reset According to Ballmer ,the world economy becomes overheated every twenty-five

Read More
Scroll to Top
WIKICFO® - Browse hundreds of articles
Skip to content