72

admin — Thu, 07 Jul 2011 11:54:54 +0000

The number 72 is used to approximatley calculate your money’s doubling time in years. Ex. You have $10 000 and recieve %6 interest a year, using the rule of 72 it will take roughly twelve years at 6 percent interest for you to accumulate $20 000. All you need to do to calculate the doubling time is divide 72 by the compound interest rate you receive annually.

Economy of scale

admin — Thu, 07 Jul 2011 10:52:56 +0000

Reducing the cost per unit of a product as a result of increased production because of increased efficiency.

Economic indicator

admin — Thu, 07 Jul 2011 10:52:19 +0000

Data revealing broad trends within the economy. Leading indicators predict the markets future, coincident indicators become available during the current market while lagging indictaors become apparent after the market activity. GDP, the consumer price index and market prices are all … Continue reading →

Effective tax rate

admin — Thu, 07 Jul 2011 10:52:05 +0000

The amount of tax paid divided by net taxable income before taxes, described as a percentage.

Economic cycle

admin — Thu, 07 Jul 2011 10:51:46 +0000

Normally charecterized by long-term pattern changes in national income. It is commonly thought that business cycles are four stages long growth, prosperity, contraction and finally recession

Emerging market

admin — Thu, 07 Jul 2011 10:51:27 +0000

The economy of a developing nation, which usually does not have a long operating history.

Equity

admin — Thu, 07 Jul 2011 10:50:56 +0000

a companies common and preferred shares are equity within the company.

Earnings per share: EPS

admin — Thu, 07 Jul 2011 10:50:53 +0000

The sum of a company’s earnings divided by the amount of outstanding shares over a specified period of time.

Equity Financing

admin — Thu, 07 Jul 2011 10:50:20 +0000

is when a corporation uses common or preferred shares to obtain capital. This strategy is employed when firms have no other means of raising financing.

Early withdrawal penalty

admin — Thu, 07 Jul 2011 10:50:06 +0000

Is a penalty paid for taking money out of a fixed term investment early. Ex. taking money out of a 1 year GIC at 6 months.