Tag: gold

Bonus definition explanation

What is Bonus?
1. Additional compensation given to an employee above his/her normal wage. A bonus can be used as a reward for achieving specific goals set by the company, or for dedication to the company.

2. Dividends paid to shareholders from funds created out of additional profits realized by the company.

3. A premium paid for accepting an agreement. Sometimes referred to as a “”signing bonus””.

4. Anything over and above what is expected. Read more for examples and further explanation including related video clips and also comments
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Zakat definition explanation

What is Zakat?
A term used in Islamic finance to refer to the obligation that an individual has to donate a certain proportion of wealth each year to charitable causes. Zakat is a mandatory process for Muslims in order to physically and spiritually purify their yearly earnings that are over and above what is required to provide the essential needs of a person or family. Read more for examples and further explanation including related video clips and also comments
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Derived Demand definition explanation

What is Derived Demand?
A term used in economic analysis that describes the demand placed on one good or service as a result of changes in the price for some other related good or service. It is a demand for some physical or intangible thing where a market exists for both related goods and services in question. The derived demand can have a significant impact on the derived good’s market price. Read more for examples and further explanation including related video clips and also comments
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Fiat Money definition explanation

What is Fiat Money?
Currency that a government has declared to be legal tender, despite the fact that it has no intrinsic value and is not backed by reserves. Historically, most currencies were based on physical commodities such as gold or silver, but fiat money is based solely on faith. Read more for examples and further explanation including related video clips and also comments
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Serial Option definition explanation

What is Serial Option?
A short-term option on a futures contract in which the underlying expires in a forward month. In a serial option, the option expires before the underlying comes to maturity. Exercising the option places the holder in a position of the nearby month futures contract. Usually, the underlying futures will expire in the following month. Read more for examples and further explanation including related video clips and also comments
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Acid-Test Ratio definition explanation

What is Acid-Test Ratio?
A stringent test that indicates whether a firm has enough short-term assets to cover its immediate liabilities without selling inventory. The acid-test ratio is far more strenuous than the working capital ratio, primarily because the working capital ratio allows for the inclusion of inventory assets.

Calculated by: Read more for examples and further explanation including related video clips and also comments
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Store Of Value definition explanation

What is Store Of Value?
Any form of commodity, asset, or money that has value and can be stored and retrieved over time. Possessing a store of value is an underlying basis for any economic system, as some medium is necessary for a store of value in order for individuals to engage in the exchange of goods and services. As long as a currency is relatively stable in its value, money (such as a dollar bill) is the most common and efficient store of value found in an economy. Read more for examples and further explanation including related video clips and also comments
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Commodity definition explanation

What is Commodity?
1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often used as inputs in the production of other goods or services. The quality of a given commodity may differ slightly, but it is essentially uniform across producers. When they are traded on an exchange, commodities must also meet specified minimum standards, also known as a basis grade.

2. Any good exchanged during commerce, which includes goods traded on a commodity exchange. Read more for examples and further explanation including related video clips and also comments
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