Types of Elasticity

This post is for educational purposes and should not be considered as investment advice. All trading involves risk. Only risk capital you're prepared to lose. Past performance does not guarantee future results.

Elasticity is a measure of the responsiveness of a variable. There are several types of elasticity. In this article, we discuss about them.

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Financial Planning

This post is for educational purposes and should not be considered as investment advice. All trading involves risk. Only risk capital you're prepared to lose. Past performance does not guarantee future results.
Planning

Financial planning is a process that evaluates the situation of a business in relation to it’s financial resources and needs and determines how to manage the liquid assets, taking the future inflows and outflows of funds into accounts.

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Financial Resources

This post is for educational purposes and should not be considered as investment advice. All trading involves risk. Only risk capital you're prepared to lose. Past performance does not guarantee future results.
Dollars

The financial resources of an organization are the set of liquid assets:
- Cash.
- Short term bank deposits.
- Liquid financial investments, like stocks and bonds.

Financial resources are used to carry out the main operations of the business, like buying goods and services, and to carry out long term investments.

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Capital Budgeting

This post is for educational purposes and should not be considered as investment advice. All trading involves risk. Only risk capital you're prepared to lose. Past performance does not guarantee future results.
Invesor making capital budgeting

Capital budgeting is a process that assess the convenience of carrying out an investment or not. If there are many profitable investments available, the capital budgeting tries to find out which one is more advisable.

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Investment Project

This post is for educational purposes and should not be considered as investment advice. All trading involves risk. Only risk capital you're prepared to lose. Past performance does not guarantee future results.
Investing money

What is an investment project

It is the planning of an expenditure of liquid resources, with the objective of taking actions that will lead to future profits.

- An investment project is made before the investment itself.

- An investment implies an expenditure of resources, but it doesn’t necessarily means that those resources are our own resources: a lot of investments are carried out by borrowing money.

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Political Economy

This post is for educational purposes and should not be considered as investment advice. All trading involves risk. Only risk capital you're prepared to lose. Past performance does not guarantee future results.

The term “political economy” was used from the 18 century and until the 19 century, as a synonym of what was understood as economics or economic science during that time. Nowadays, there is a discipline called political economy and it’s not a synonym of economy. It is a branch of social sciences that studies the relations between society, state, markets and people. It is the study of the state administration, taking into account economic, political and sociological elements.

Difference Between Microeconomics and Macroeconomics

This post is for educational purposes and should not be considered as investment advice. All trading involves risk. Only risk capital you're prepared to lose. Past performance does not guarantee future results.
Ilustration: book

The distinction between macro and micro economics is the most usual classification of economic analysis.

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Cash Flow Statement

This post is for educational purposes and should not be considered as investment advice. All trading involves risk. Only risk capital you're prepared to lose. Past performance does not guarantee future results.
Statement

The cash flow statement shows the inflows and outflows of cash generated and used by an organization in a given period of time.

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Credit Risk

This post is for educational purposes and should not be considered as investment advice. All trading involves risk. Only risk capital you're prepared to lose. Past performance does not guarantee future results.
Credit Card

Good policies to minimize credit risk.

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Economic Model

This post is for educational purposes and should not be considered as investment advice. All trading involves risk. Only risk capital you're prepared to lose. Past performance does not guarantee future results.
Models

A model is a representation of a theory or event. An economic model is a simplified representation of economic processes. This representation can be used to:

  • gain a better understanding of the theory,
  • to explain the theory to others
  • to generate hypotheses about economic behavior, that can be compared against economic outcomes.
  • to predict the outcome of economic policies.

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