Understanding Quarterly Reports
A quarterly report provides a snapshot of a company's financial performance over a three-month period. It's crucial for investors and stakeholders to track progress, identify trends, and make informed decisions…
Quantity Theory of Money
The quantity theory of money posits a direct relationship between the money supply and the general price level. An increase in money supply, assuming velocity and real output are constant,…
Quantitative Easing (QE)
Quantitative easing is a monetary policy where a central bank injects liquidity into markets by purchasing assets. It aims to lower interest rates and stimulate economic activity, especially during recessions.
Purchasing Power Parity (PPP)
Purchasing Power Parity (PPP) theory suggests exchange rates should equalize prices for identical goods and services across countries. It's a tool for comparing living standards and economic productivity.
Purchasing Managers’ Index (PMI)
The Purchasing Managers' Index (PMI) is a key economic indicator reflecting business activity in the manufacturing and services sectors. It provides insights into employment, production, new orders, and supplier deliveries.
Public Company
A public company is a corporation whose ownership is dispersed among the general public through freely transferable shares of stock. These companies are typically listed on a stock exchange.
Understanding Profits: The Engine of Business Success
Profits represent the financial gain after all expenses are deducted from revenue. They are crucial for business growth, reinvestment, and rewarding stakeholders, signifying a company's financial health and operational efficiency.
Profit Participating Deferred Shares
Profit Participating Deferred Shares offer a unique way to defer compensation while allowing participants to share in future company profits. This structure aligns employee interests with long-term company success and…
Profit and Loss Account
The profit and loss account, also known as an income statement, summarizes a company's revenues, expenses, and profits over a specific period. It reveals financial performance and profitability.
Producer Price Index (PPI)
The Producer Price Index (PPI) measures the average change over time in selling prices received by domestic producers for their output. It tracks price fluctuations at the wholesale level, offering…