Finance & Business
Laffer Curve
The Laffer Curve is a curve which suggests that for a given economy there is an optimal income tax level to maximize tax revenues. The Laffer Curve shows the relationship between tax rates and tax revenue collected by governments.
Gini Coefficient
The Gini Coefficient is a way to measure equity and is derived from the Lorenz curve.
The Gini coefficient is defined graphically as a ratio of two surfaces involving the summation of all vertical deviations between the Lorenz curve and the perfect equality line (A) divided by the difference between the perfect equality and perfect inequality lines (A+B).
Lorenz Curve
The Lorenz Curve is a graphical representation of the proportionality of a distribution. It represents a probability distribution of statistical values, and is often associated with income distribution calculations and commonly used in the analysis of inequality.
Cash Asset Ratio (CAR)
The Cash Ratio (CaR) or Cash Asset Ratio (CAR) is a method or a formula for capturing the liquidity of a company by comparing company's cash reserves and liabilities.
Option delta
The delta of an option or simply the option delta is the sensitivity of an option price relative to changes in the price of the underlying asset. It is represented as the price change given a 1 point move in the underlying asset and is usually displayed as a decimal value.
Return On Assets (ROA)
Retun On Assets (or ROA for short) is an indicator informing the user about how profitable a company is relative to its total assets. It tells the user how effective a business has been at putting its assets to work.
Capital Adequacy Ratio (CAR)
Capital Adequacy Ratio (CAR) is a ratio that regulators in the banking system use to watch bank's health, specifically bank's capital to its risk. Regulators in the banking system track a bank's CAR to ensure that it can absorb a reasonable amount of loss.
Current Ratio (CuR)
The Current Ratio (CUR) is a model or a method used to measure the liquidity of a company by comparing all current assets to all current liabilities.
Quick Ratio (QuR) and Acid-Test Ratio
The Quick Ratio (QUR) is a model or a method used for measuring the liquidity of a company by calculating the ratio between all assets quickly convertible into cash and all current liabilities.
Return On Investment (ROI)
Return on Investment (ROI) is a traditional financial measure similar to Return on Equity (ROE) that is used to measure corporation's profitability that reveals how much profit a company generates with the money and other sources from investors.
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