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Mathematical Economics

Mathematical economics is a subfield of economics that focuses on applying mathematical techniques to analyze economic models and problems. It draws on tools from various disciplines, including: Key concepts: Modeling: Mathematical economists create mathematical models that describe economic behavior, often using tools like differential equations, linear algebra, game theory, and statistics. Analysis: These models are […]

2 mins read

Treynor Ratio

The treynor ratio is a measure of the relationship between the beta coefficient and the standard deviation of a security. The ratio is named after the American economist Jack Treynor, who first proposed it in 1961. The treynor ratio is calculated by dividing the security’s beta coefficient by its standard deviation. A high treynor ratio […]

1 min read

Expropriation

Expropriation is the act of taking private property from its owner by the state or other government agency. Types of Expropriation: Public purpose: When land is taken for a public purpose, such as building roads, parks, or schools. Private purpose: When land is taken for a private purpose, such as for industrial development or housing. […]

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Long Term

“Long-term” is a term that describes a period of time that is longer than the short-term. The length of the long-term can vary depending on the context, but it generally refers to a period of time that is more than a few years. Here are some examples of the use of the word “long-term”: Long-term […]

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Capitalism

Capitalism Capitalism is a fundamental economic system characterized by private ownership and the means of production. Its defining principles include: Private Ownership:– The means of production, such as land, factories, and equipment, are privately owned by individuals or corporations. Competition:– Firms compete with each other in open markets for customers and profit. Supply and Demand:– […]

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Open Offer

Definition: An open offer is a type of invitation to negotiate that is made to a group of people and is open to any member of the group to accept. Key Features: Open to any member of the group: Anyone who is invited to the offer can accept, regardless of their position or status within […]

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Promissory Note

Promissory Note A promissory note is a written promise to repay a debt at a specified time and interest rate. It is a legally binding contract between two parties: the promisor (the lender) and the promisee (the borrower). Essential Elements of a Promissory Note: 1. Maker: The promisor who signs the note, guaranteeing payment.2. Payee: […]

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Sustainable Investing

Sustainable Investing Sustainable investing is a type of investing that takes into account the long-term environmental, social, and governance (ESG) factors of a company when making investment decisions. It involves incorporating ESG criteria into the investment process to create a positive impact on the world while generating financial returns. Key Principles of Sustainable Investing: 1. […]

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Cash Book

A cash book is a record of cash receipts and payments made by a business. It is typically used by small businesses and entrepreneurs. Components of a Cash Book: Cover: The cover of the cash book will usually have the business name and address. Index: The index is a list of accounts used to categorize […]

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Regressive Tax

Regressive Tax A regressive tax is a tax that disproportionately burdens low-income individuals and corporations. Definition: A tax system in which the burden of taxation increases with the proportion of income or wealth. In other words, people with higher incomes and wealth pay a higher percentage of their income or wealth in taxes than those […]

2 mins read

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