Investment

Paradox of Thrift
An economic paradox that illustrates how an increase in the ex ante propensity to save can lead to a decrease in ex post savings and investment in a depressed economy.
Pay-back Period
The time period firms require to earn the cost of new equipment in profits for investment purposes, not always an economically rational investment criterion.
Pension Fund
An overview of pension funds, their function, governance, and influence in various economic frameworks
Perpetual Bond
An irredeemable bond that pays interest indefinitely.
Perpetual Inventory Method
A method to estimate a country’s total capital stock by accounting for past real investments and depreciation.
Physical Capital
Capital in the form of physical goods, including fixed capital, stocks, and work in progress.
Plough-back
The system of financing investment in firms by retaining profits
Ponzi scheme - Definition and Meaning
An extensive analysis of Ponzi schemes, including historical context, definitions, major analytical frameworks, and case studies.
Portfolio
A collection of different assets owned by an individual or a firm, designed for risk reduction and optimizing liquidity.
Portfolio Selection
The choice of proportions in different assets to maximize expected benefit from a given stock of wealth.
Position
Understanding the various types of positions in financial markets, including long, open, and short positions
Price–Earnings Ratio
An in-depth exploration of the price–earnings ratio, its significance, and its application in evaluating company stocks.
Private Internal Rate of Return
The discount rate that equalizes the net present value of future real gains from private activities to their real private costs.
Prospectus
An informative document provided by a company during the issuance of new shares or debentures to the public.
Put Bond
A put bond, also known as a retractable bond, allows the bondholder to force the issuer to repurchase the bond at specified dates before maturity.
Pyramid Scheme
Definition and meaning of a pyramid scheme, including its mechanics and economic implications.
Quasi-Rent
A payment for the services of factors of production which resembles rent but is associated with past investments.
Real Option Theory
An approach to the analysis of investment opportunities using option valuation techniques.
Redemption Value
An in-depth look at the concept of redemption value in economics and finance.
Redemption Yield
The interest rate that equates the present value of interest receipts and principal repayments with the market price of a security when held to maturity.
Required Rate of Return
Definition and analysis of required rate of return as a critical concept in investment finance.
Retractable Bond
A comprehensive overview of retractable bonds, their function, importance, and implications in the context of various economic frameworks.
Risk Bearing
The concept of being exposed to the consequences of uncertain future events in economic decision-making.
Risk Capital
Capital invested in new and untried projects with a significant chance of loss, typically associated with venture capital investment.
Risk-Adjusted Return on Capital (RAROC)
Definition and concepts surrounding the method of evaluating investment returns in relation to risk.
Running Yield
An assessment of income generated by a portfolio as a percentage of its current market value.
Scenario Analysis
An assessment method for risky investment projects based on varying macroeconomic and project-specific factors.
Securities Market
Detailed analysis and explanation of the term 'securities market,' also known as the stock exchange.
Share Capital
The authorized or nominal value of a company’s shares as established in the memorandum of association.
Short Position
A detailed analysis of the concept of a short position in economics, particularly in the context of securities and futures markets.
Short-termism: Definition and Meaning
An overview of short-termism in economic contexts, examining its implications and various theoretical frameworks.
Stock - Definition and Meaning
The comprehensive definition of stock in economics and its contextual application in various economic theories.
Stock Option
An instrument offering the right, but not the obligation, to buy or sell a stock at a predetermined price within a specified time period.
Stock Split
A corporate action that increases the number of shares in a corporation without changing the total capital base, often used to make shares more accessible to small investors.
Time Horizon
The most remote future period taken into account in making economic decisions.
Tobin’s q
The ratio of the valuation shareholders place on a firm to the market value of its assets.
Transatlantic Trade and Investment Partnership
Transatlantic Trade and Investment Partnership, a proposed trade and investment agreement between the European Union and the United States focusing on market access and regulatory cooperation.
Turnkey Project
An in-depth look into turnkey projects, their structure, benefits, and place in economic theory and practice.
Unbiased Expectations Hypothesis
A comprehensive entry on the Unbiased Expectations Hypothesis, including background, historical context, definitions, major analytical frameworks, comparative analysis, and related terms.
Undated Security
A security with no set redemption date; obligates the borrower to pay interest but not to redeem it.
Unit Trust
A UK system that allows small investors to benefit from diversified portfolios by purchasing units in a trust.
User Cost of Capital
A comprehensive overview of the user cost of capital, including its definitions, frameworks, historical context, and case studies.
Value at Risk (VaR)
A measure of the potential loss in value of an asset or portfolio over a defined period for a given confidence interval
Variance in Economic and Financial Analysis
A comprehensive entry on the definition and implications of variance in the realm of economics and finance.
Venture Capital
Capital invested in new or small businesses, with a high risk of loss, essential for enabling entrepreneurship.
Warrant - Definition and Meaning
A financial instrument granting the holder the right to purchase an underlying asset at a predetermined price.
Zero Coupon Bond
A bond that does not make any periodic coupon payments, sold at a discount from its face value and pays the face value at maturity.
Property Portfolio
An in-depth definition and analysis of the term 'Property Portfolio' within the field of economics.