Do you want to be able to read a cash flow statement like a pro? Cash flow statements are an important tool for understanding the financial health of businesses and …
Investment Terms Explained for Beginners
If you’re just starting out in the investing world, the complicated jargon can become very confusing. Many people are put off investing altogether when they first come across a number …
Financial Markets Definition
The term ‘financial markets’ is broad, but is widely used in the financial media. If you’re interested in learning the definition of financial markets, including the different types of financial …
Stock Market Definition
Stock market definition The stock market represents the aggregate value of all publicly traded shares, also known as stocks or equities, across all stock exchanges around the world. Shares of …
Recession Definition
Definition of recession A recession is a contraction in the size of an economy. This means that the total value of goods and services produced by the economy was less …
The London Stock Exchange
This article will explain everything you want to know about the London Stock Exchange (LSE) in the modern-day. Please read the history of the London Stock Exchange to learn about …
About the Bank of England
The Bank of England is the UK’s central bank, which has a number of powers and responsibilities such as setting the Official Bank Rate and influencing the money supply through …
The Reason Why Private Home Sales are Booming
In the last few years, there has been an increase in private house sales, with some vendors shifting away from old property portals deciding to go off-market when it’s time …
History of the London Stock Exchange
A fact-checked and authoritative account of the history of the London Stock Exchange (LSE). The London Stock Exchange is one of the worlds largest and most well-known exchanges for the …
About The Chartered Institute for Securities & Investment (CISI)
The Charted Institute for Securities & Investment (CISI), is a professional body for financial services professionals based in London, UK. It provides several professional qualifications for individuals working in the …
How To Calculate The Cost Price And Why It’s Important For Your Business
One of the most important indicators of doing business is cost price. This indicator must be regularly calculated and analyzed. By calculating the cost price, you will get an idea …
Bear Market – Definition
Definition of a bear market: a prolonged period of price falls in a financial market, such as the stock market. What is a bear market? A bear market is a …
Beta – Definition
Definition of beta (finance): Beta represents the correlation between movements in the price of a security, and price movements in the broader market for similar securities. What is beta? Beta …
Assets Under Management (AUM) – Definition
Definition of assets under management (AUM): The value of assets held by a fund manager, investment house or other financial institution on behalf of investors. What is assets under management? …
Acquisitions – Definition
Definition of acquisitions: Where a company or organisation gains control and ownership of a company, trade, or a collection of specific assets and liabilities. What is an acquisition? An acquisition …
Capitalism – Definition
Definition of capitalism: A political & economic model in which ownership of land & resources can be freely traded between individuals in a free market. What is capitalism? Capitalism is …
The Business Cycle – Definition
Definition of business cycle: The pattern of expansion and contraction in the economy which repeats roughly every 7 – 10 years. What is the business cycle? The business cycle is …
Capital Asset Pricing Model (CAPM) – Definition
Definition of Capital Asset Pricing Model (CAPM): A formulae for investor expected return, which states that a return is a function of the risk-free rate, the market return for taking …
Economics Definitions
This page holds our Financial Expert™ Definitions of economics jargon and terms. Cut through complex economic concepts with our easy explainer guides. Each definition page is much more than a …
Bull Market – Definition
Definition of a bull market: a prolonged period of optimism and price increases in the financial markets. What is a bull market? A bull market is a prolonged period of …
Monopolies & Monopolistic Competition – Definition
Definition of monopolistic competition: Where there is only one dominant seller of a good in a marketplace, the seller is said to be a monopoly. In a monopolistic marketplace, a …
Monetary Policy – Definition
Definition of monetary policy: The policies and programmes put in place typically by a central bank to control the money supply of an economy. What is monetary policy? Monetary policy …
Macroeconomics – Definition
Definition of macroeconomics: The field of economics which attempts to model the behaviour of an economy, rather than the behaviour of individual participants. What is macroeconomics? Economics is an attempt …
Law of Supply & Demand – Definition
Definition of law of supply & demand: A framework used by economists to describe the tendency of free markets to settle at a market price at which quantity demanded equals …
The Invisible Hand – Definition
Definition of the invisible hand: The observation by economist Adam Smith that a free market formed of independent actors acting in their own self interest will appear to automatically settle …
Inflation – Definition
Definition of inflation (economics): A measure of the general rise in consumer prices over time. What is inflation? Prices of good and services tend to go up over time. Inflation …
Industrial Revolution – Definition
Definition of the industrial revolution: A period of transformative economic development in the UK, powered by new technologies, fossil fuel energy and changes to the workforce. What is the industrial …
Gross Domestic Product (GDP) – Definition
Definition of Gross Domestic Product (GDP): A measure of the aggregate goods and services produced by an economy over a time period. What is Gross Domestic Product (GDP)? Gross Domestic …
The Great Recession – Definition
Definition of The Great Recession: The economic downturn stretching from 2007 – 2009, which featured a global reduction in GDP, the collapse of several banks, a tightening of consumer spending, …
Globalisation – Definition
Definition of globalisation: The trend which has seen a seismic increase in trade, commerce, ideas and culture across international borders. What is globalisation? Globalisation refers to the idea that as …
Game Theory – Definition
Definition of game theory: the study of how strategic decisions are logically made in a competitive environment where the actions of one participant can impact the success of another. The …
Fringe Benefits – Definition
Definition of fringe benefits (business): The perks and benefits that businesses offer their employees beyond financial remuneration such as salaries and bonus. What are fringe benefits? Fringe benefits are a …
Free Market – Definition
Definition of a free market: a market in which buyers and sellers can transact with free choice, perfect information and without restriction. What is a free market? A free market …
Economies of Scale – Definition
Definition of economies of scale: The observation that the unit cost of production tends to decrease when higher the quantities are produced. What are economies of scale? Economies of scale …
Economic Moat – Definition
Definition of economic moat: A specific and persistent advantage which a company holds over existing or potential new competitors. What is an economic moat? An economic moat is a metaphor …
Elasticity of Demand – Definition
Definition of elasticity of demand: How sensitive demand for a product is to a change in price. What is elasticity of demand? Elasticity of demand is a very interesting economics …
Command Economy – Definition
Definition of command economy: A economic model, in contrast to capitalism, in which all decisions over which goods and services are produced and in what quantity is centrally controlled, typically …
Business Definitions
This page holds our Financial Expert™ Definitions of business jargon and terms. Cut through business jargon with our easy explainer guides. Each definition page is much more than a business …
Demand – Definition
Definition of demand: the measure of market participants level of desire to buy goods or services at different prices. What is demand? Demand is an economics concept which you’ll frequently …
Consumer Price Index (CPI) – Definition
Definition of the Consumer Price Index (CPI): A UK price index produced by the Office of National Statistics. Using a consistent basket of goods which excludes the cost of housing, …
Comparative Advantage – Definition
Definition of comparative advantage: the efficiency and effectiveness with which an economy can produce a good or service relative to other economies. What is comparative advantage? Comparative advantage is a …
Budget Deficit – Definition
Definition of budget deficit: the shortfall between the income and expenditure of a person, organisation or government over a period of time. What is the budget deficit? The budget deficit …
Unsecured Loan – Definition
Definition of unsecured loan: a borrowing arrangement where the lender seeks no collateral or security over the assets of the borrower to repossess in the event that the borrower defaults …
Subsidiary – Definition
Definition of subsidiary: a company which is primarily owned by another company, rather than external shareholders. What is a subsidiary? A subsidiary is a descriptive term for a company in …
Outsourcing – Definition
Definition of outsourcing: The purchase of ready-made goods or services from other businesses rather than producing them in-house from scratch. What is outsourcing? In plain English, outsourcing is when a …
Organisational Structure – Definition
Definition of organisational structure: The shape of reporting lines between people and departments in an organisation, which defines how the business is managed and who makes key decisions. The best …
Liquidation – Definition
Definition of liquidation (business): The winding up of a company by realising the cash value of its assets to settle its liabilities. What is liquidation? Liquidation is a word which …
Key Performance Indicators (KPI) – Definition
Definition of Key Performance Indicators (KPIs): A metric, ratio or data point used to measure the performance of an organisation. What is a Key Performance Indicator (KPI)? In business, a …
Accounting Definitions
This page holds our Financial Expert™ Definitions of accounting jargon and terms. Cut through accounting jargon with our explainers. Each definition page is much more than an accounting definition. Beyond …
Code of Ethics – Definition
Definition of code of ethics (business): A reference guide providing guidance to employees to help them understand expected behaviours and guide them through moral dilemmas. What is a code of …
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