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DOCENTE:
IVAN DARIO ESPITIA HOYOS
2. Ability To Pay: Ability to pay is an economic principle that states that the amount of
tax an individual pays should be dependent on the level of burden the tax will create
produce a good or service at a lower cost per unit than another entity that produces the
same good or service. Entities with absolute advantages can produce a product or
service using a smaller number of inputs or a more efficient process than another entity
4. Market: is a medium that allows buyers and sellers of a specific good or service to
5. Corporations: is a legal entity that is separate and distinct from its owners.
Corporations enjoy most of the rights and responsibilities that an individual possesses:
enter contracts, loan and borrow money, sue and be sued, hire employees, own assets
6. Stock Market: refers to the collection of markets and exchanges where the issuing
and trading of equities or stocks of publicly held companies, bonds, and other classes
of securities take place. This trade is either through formal exchanges or over-the-
provide for an equal distribution in any profits, if any are declared, in the form of
dividends
8. Capital Invesment: refers to funds invested in a firm or enterprise for the purpose
recognizing the best possible outcome for his investment. This is the price at which
the trader or investor wants to exit his existing position so he can realize the most
reward
10. Fixed Cost: is an expense or cost that does not change with an increase or decrease
in the number of goods or services produced or sold. Fixed costs are expenses that
11. Fixed Price: The fixed price leg is that one which entails the fixed rate.A fixed-
for-fixed swap can occur in an exchange between two currencies where both legs
12. Manufacturing: is the processing of raw materials into finished goods through
businesses to sell finished products at a premium over the value of the raw
materials used
banks that set a beginning price range for a given security and oversee its sale to
investors
14. Partnership: is a formal arrangement in which two or more parties cooperate to
15. Back Up: the price of a security "backs up" when a company finds the security
16. Bad Bank: set up to buy the bad loans of another bank with significant
17. Balance Billing: is a practice by a health care provider that bills the patient for the
difference between what the provider charges and what insurance covers.
18. Call Money Rate: is the interest rate on a type of short-term loan that banks give
to brokers who in turn lend the money to investors to fund margin accounts.
19. Delivery Instrument: is a document given to the holder of a futures contact that
may be exchanged for the underlying commodity when that future contract
expires. It can commonly take the form of a shipping receipt or a receipt from a
warehouse holding the commodity. It will specify the type and amount of the
specified commodity.
20. Demo Account: A demo account is a type of account offered by trading platforms,
experiment with the trading platform and its various features, before deciding to
set up a real account funded with the customers actual money. Demo accounts are
22. Early Exercise: Early exercise of an options contract is the process of buying or
selling shares of stock under the terms of that option contract before its expiration
date. For call options, the options holder can demand that the options seller sell
shares of the underlying stock at the strike price. For put options, it is the converse,
where the options holder may demand that the options seller buy shares of the
23. Easy Money: denotes a condition in the money supply. Easy money occurs when
the U.S. Federal Reserve allows cash flow to build up within the banking system,
as this lowers interest rates and makes it easier for banks and lenders to loan
money. Therefore, borrowers can acquire money more easily from lenders.
optimally allocated to serve each individual or entity in the best way while
deferred payment plans, lines of credit, revolving credit, term loans, letters of
26. Failed Break: occurs when a price moves through an identified level of support
or resistance but does not have enough momentum to maintain its direction.
27. Magnet Employer:is a popular business or individual to whom job
28. Manipulation: is the act of artificially inflating or deflating the price of a security
or otherwise influencing the behavior of the market for personal gain. is illegal in
most cases, but it can be difficult for regulators and other authorities to detect.
29. Sale: refer to an agreement between a buyer and seller on the price of a security.
A sale functions as a contract between the buyer and seller of the selected good or
service.
result, rather than the optimal solution. Rather than put maximum exertion towards
attaining the most ideal outcome, satisficing focuses on pragmatic effort when
confronted with tasks. This is because aiming for the optimal solution may
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