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…
Privatisation: Transferring State-Owned Assets to Private Ownership
Privatisation involves the transfer of ownership, control, and management of state-owned enterprises and assets to the private sector. This aims to boost efficiency, competition, and economic growth through market forces.
Primary Discount Rate
The primary discount rate is the interest rate at which commercial banks can borrow money directly from the central bank. It's a key tool for monetary policy, influencing credit availability…
Price to Earnings Ratio (PE Ratio)
The PE ratio compares a company's current share price to its earnings per share. It's a valuation metric used to determine if a stock is overvalued or undervalued by investors.…