Archives: Terms

Definition of Straight-Line Depreciation Straight-line depreciation is a method of allocating the cost of a tangible fixed asset evenly over its useful life. This means that the asset’s value is reduced by the same amount each accounting period until it reaches its salvage value, or the estimated residual value at […]

Definition of Stop-Go Cycle The stop-go cycle is an economic phenomenon characterized by alternating phases of economic expansion and contraction, often driven by varying government policies or external economic factors. This cyclical pattern typically results from attempts to manage economic growth and inflation or to stabilize an economy within a […]

Definition of Stockpile Stockpile refers to the accumulation and storage of a reserve supply of goods, commodities, or resources for future use. This strategy is often employed to ensure adequate availability during emergencies, shortages, or periods of increased demand. Governments, businesses, and individuals alike may create stockpiles for various reasons, […]

Definition of Stockbroker A stockbroker is a professional individual or firm that acts as an intermediary between buyers and sellers of stocks. Stockbrokers facilitate transactions for clients by executing buy and sell orders on exchanges. They earn a commission or fee for their services. Stockbrokers offer various types of services, […]

Definition of Stock Split A stock split is a corporate action wherein a company divides its existing shares into multiple shares to boost the liquidity of the shares. Although the number of shares outstanding increases by a specific multiple, the total dollar value of the shares remains the same compared […]

Definition of Stock Option A stock option is a financial instrument that provides an individual the right, but not the obligation, to buy or sell a specific number of shares of a company’s stock at a predetermined price, known as the exercise or strike price, within a certain time frame. […]

Definition of Stock Market Crash A stock market crash is a sudden and significant decline in the value of stocks listed on stock exchanges, leading to a sharp reduction in overall market indices. This rapid drop in stock prices can be triggered by various factors such as economic instability, market […]

Definition of Stock Market The stock market is a collection of markets and exchanges where the buying, selling, and issuance of shares of publicly held companies take place. These financial activities are conducted through institutionalized formal exchanges or over-the-counter (OTC) marketplaces, which operate under a defined set of regulations. Examples […]

Definition of Stock Exchange Listing A stock exchange listing is the process by which a company gets its shares listed on a stock exchange, making them available for public trading. Being listed on a major stock exchange ensures that the company adheres to strict regulatory and reporting requirements, reflecting its […]

Definition of Stock Exchange Automated Quotation System (NASDAQ) The Stock Exchange Automated Quotation System, commonly known as NASDAQ, is an American stock exchange. It is the second-largest stock exchange in the world by market capitalization, behind only the New York Stock Exchange (NYSE). NASDAQ was the world’s first electronic stock […]