Blog Posts

Everyone who has a stake in the success of your business is a stakeholder. When you think of stakeholders in business, your mind might first go to shareholders. And while shareholders are certainly one type of stakeholder, they’re not the only ones. In fact, there are several types of business stakeholders. Here’s a quick overview […]

What Is the National Savings Rate? The national savings rate is the percentage of income that households – on aggregate – save. It’s calculated by subtracting personal consumption expenditures from personal disposable income. The resulting number is divided by personal disposable income and multiplied by 100 to get a percentage. The formula for calculating the […]

What Are War Bonds? War bonds are a type of debt security issued by the government to finance military operations and other spending during times of conflict. They are typically sold to investors at a discount, with the promise that they will be redeemed for full face value when the bonds mature. War bonds are […]

What Is Qualified Small Business Stock (QSBS)? Qualified small business stock (QSBS) is a designation given to certain stocks of small businesses that qualify for special tax treatment. When you sell or exchange QSBS, you may be able to exclude all or part of the gain from your taxable income. To qualify for QSBS status, […]

What Is the Annual Percentage Yield (APY)? The annual percentage yield (APY) is a measure of how much interest you earn on an investment over the course of a year. It takes into account the interest rate and any compounding that may occur during the year. The APY is important because it allows you to […]

What Is Sensitivity Analysis? Sensitivity analysis is the process of changing input variables to determine how it will change the output variable. For example, if you are doing a discounted cash flow analysis on a certain stock, you might want to look at how changing interest rates would influence the stock price or how changing […]

What Is Reflexivity? Reflexivity is a trading concept popularized by George Soros. It posits that there is a two-way relationship between price and underlying fundamentals. This means that price movements can influence the underlying fundamentals, which in turn can influence prices. This theory is based on the idea that people base their decisions on their […]

What Is Monopolistic Competition? Monopolistic competition is a type of market structure characterized by many sellers offering slightly differentiated products. The key characteristics of monopolistic competition are: Many sellers There are many firms in the market, each with a small share of the total market. This gives buyers a wide range of choices. Slightly differentiated […]

What Is a Family Limited Partnership? A family limited partnership (FLP) is a legal entity created by family members to manage and invest family assets. The partnership is managed by one or more general partners, who have full control over the partnership’s activities. The limited partners are typically relatives of the general partners, and their […]

What Is a Lorenz Curve? A Lorenz curve is a graphical representation of the distribution of wealth or income. It is a plot of the cumulative percentages of the population against the cumulative percentages of wealth or income held. The name comes from American economist Max O. Lorenz, who developed the concept in 1905. The […]