Real income is how much an individual, organization, or country can actually purchase or do with its earnings after taking inflation into account; that is, its purchasing power. In an environment where prices are increasing, even if you made the same amount of money, say $100, this year as you did last year, your real income was greater last year because you could buy more with that $100 last year than you can this year.
Archive for the ‘Level 1’ Category
Real Income is…
Thursday, August 20th, 2009The Tech Bubble was…
Thursday, August 20th, 2009The tech bubble (also known as the internet or dot-com bubble) was the period between 1998 and 2001 during which stock markets in western countries saw their values rise rapidly in the technology sectors. During this time, a good number of tech. companies were founded, went public, and saw their stocks soar.
A Hedge Fund is…
Thursday, August 20th, 2009A hedge fund is a limited partnership of investors that uses high-risk methods, such as investing with borrowed money, in the hope of realizing large gains. Similar to a mutual fund, a hedge fund pools investors’ money together in order to increase the possibility of realizing serious earnings on their investments.
Over-The-Counter is…
Thursday, August 20th, 2009Over-the-counter is a term used to describe the trading of financial instruments that does not happen through an exchange mechanism (such as the stock market). Instead, these instruments are traded directly among dealers, either on the phone or electronically.
A Stock Market is…
Tuesday, August 18th, 2009A stock market is a public market for trading (buying and selling) stocks. The NYSE (New York Stock Exchange) and Nasdaq are the largest stock markets in the United States.
A Duty is…
Tuesday, August 18th, 2009A duty is a tax levied on products that are imported or exported from a different country. If a manufacturer wants to ship his product to another country and sell it there, he may have to pay a duty for sending it out of the first country and another duty for sending it into the second, depending on the tax laws in place in each country.
A CEO is…
Tuesday, August 18th, 2009A CEO is the Chief Executive Officer of a corporation; hired by the Board of Directors, the CEO is the person who is in charge of the strategic direction, management of operations, and financial results of the company.
A Stockholder is…
Tuesday, August 18th, 2009A stockholder is another name for a shareholder or a stakeholder. It’s a person who owns shares of a company’s stock.
Gross Profit is…
Monday, August 17th, 2009Gross profit is an accounting calculation of expenses subtracted from total sales. In other words if a company sold $100 worth of pencils in a month and it cost them $20 to manufacture, sell and pay for labor, then the gross profit is $80.
A W-9 is…
Monday, August 17th, 2009A W-9 is an IRS form that companies use to collect and verify tax information from freelance and other temporary workers. It’s just a tax record and verification for the company so it can keep track of everyone who it has paid – the IRS wants to know about a person, even if he or she worked for only two days.