The World Trade Organization (WTO) is the international body that deals with trade issues between nations. It provides a forum for moderating any trade talks, but it also is an advocate for trade liberalization – it tries to remove trade penalties or obstacles that countries might have in place.
Archive for the ‘Daily Definition’ Category
The World Trade Organization is…
Friday, August 21st, 2009Antitrust Laws are…
Friday, August 21st, 2009Antitrust laws are created to prevent companies from adopting certain business practices (like monopolizing an industry) that can restrict trade. These laws are in place to make businesses more competitive, which is better for the economy as a whole.
The PPI is…
Friday, August 21st, 2009The PPI (Producer Price Index) is a measurement of how expensive it is for businesses to operate. It measures the average price for a sample group of goods that businesses or producers need to make a product. A high PPI will mean high prices for you, the consumer, because it costs more for businesses to make whatever it is you’re buying.
Investor Relations is…
Friday, August 21st, 2009Investor relations is a department within a company that distributes information about the company and its financial health to existing and potential shareholders.
An Investor is…
Friday, August 21st, 2009Traditionally, an investor is an individual who commits money to products with the expectation of greater financial return. It is a major goal of an investor to minimize risk and maximize profit.
Structured Finance is…
Friday, August 21st, 2009Structured finance is a term used to describe the trading of debt between banks. Basically it is the transferring of risk from one bank to another bank.
A Money Market is…
Friday, August 21st, 2009A money market is a market for borrowing and lending money for three years or less. The securities in a money market can be U.S. government bonds, treasury bills and other short-term instruments.
Leverage is…
Friday, August 21st, 2009Leverage is an investment technique in which you use a small amount of your own money, and borrow the rest to make an investment of much larger value. In that way, leverage gives you significant financial power. If you borrow 90% of the cost of a home, you are using leverage to buy a much more expensive property than you could have afforded by paying with your own cash.
Market Share is…
Friday, August 21st, 2009Market share is the percentage of total industry sales that a company controls. It describes the strength of a company. If there are 50 greeting cards sold every year and your card company sells 40 of them, you have an 80% market share of the greeting card industry. Well done!
Production is…
Thursday, August 20th, 2009Production is the creation, harvest, or refining of a good or idea, which is then usually put up for sale (car production, for example). In other words, it is the “output” of our economy.