Archives: Terms

Definition of Share Price Index A share price index, commonly known as a stock market index, is a measure that reflects the performance of a specific group of shares listed on stock exchanges. This index is constructed by calculating a weighted average of these stock prices to track changes in […]

Definition of Share Price Share price refers to the current price at which a particular company’s stock can be bought or sold on a stock exchange. It represents the market value of a single share of the company’s stock and fluctuates based on supply and demand dynamics in the market. […]

Definition of Share Option A share option, also known as a stock option, is a financial instrument that gives the holder the right, but not the obligation, to buy or sell shares of a company’s stock at a predetermined price, known as the exercise or strike price, before or at […]

Definition of Share Capital Share capital, also known as equity capital, represents the amount of money that a company raises by issuing shares to shareholders in exchange for capital. These shares constitute ownership in the company, and shareholders become part-owners with potential claims on the company’s assets and earnings. Share […]

Definition of Share Buybacks Share buybacks, also known as stock repurchases, refer to the process by which a company buys back its own shares from the existing shareholders, typically at a premium to the current market price. The repurchased shares are then either canceled, reducing the number of outstanding shares, […]

Definition of Share A share represents a unit of ownership in a company or financial asset. By owning shares, investors become partial owners of the company and are entitled to a portion of the profits, typically paid out as dividends. Shares can be bought and sold on stock exchanges, where […]

Definition of Shapley Value The Shapley Value is a concept from cooperative game theory, developed by economist Lloyd Shapley. It is used to determine the fair distribution of payoffs among players in a coalition, considering each player’s contribution to the total payoff. Essentially, the Shapley Value provides a method to […]

Definition of Shake-Out Shake-out is an economic term that describes a period in which numerous firms exit a market or industry, leading to consolidation and a decrease in the number of competitors. This often occurs during the later stages of an industry’s lifecycle when growth slows down, competition increases, and […]

Definition of Shadow Prices Shadow prices represent the implicit, not directly observable, value of resources in-use. Essentially, they reflect what the cost, or value, of a resource would be if it were priced according to its opportunity cost rather than by market determination. Shadow prices are frequently used in non-market […]

Definition of Shadow Economy The shadow economy, also known as the underground economy, informal economy, or black market, refers to economic activities that occur outside the formal, regulated economy. These activities are often unreported to government authorities and are, therefore, not included in the official economic statistics. This includes transactions […]