A small, profitable segment of an existing market. It is easier for new companies, projects or start-ups to gain a competitive advantage and to dominate their field by focusing on a small market, versus a highly served large market. This is counterintuitive for most people because they think there are more opportunities in large, established markets.
Category: Money & Wealth Page 2 of 14
1. The time when something happens or is done especially when it is thought of as having a good or bad effect on the result. 2. The ability to choose the best moment for some action, movement, etc. 3. The ability of a performer, esp. in comedy, to deliver lines, react, cut in, etc., at whatever tempo will create the desired effect. 4. The practice of investing financial assets to certain asset classes, sectors, countries, etc. to take advantage of short-term opportunities. Market timing is an active, research-based strategy vs the buy-and-hold strategy which focuses on longer timeframes.
1. The act of consuming or the state of being consumed, esp by eating, burning, etc. 2. Expenditure on goods and services for final personal use. 3. The quantity consumed. 4. A condition characterized by a wasting away of body tissues. 5. Income, liquid cash levels, product lifecycles, confidence levels, borrowing levels and availability of debt influence consumer consumption.
1. The probability or threat of loss, liability, damage or any other negative occurrence and that may be avoided through preemptive action. 2. The probability that an actual return on an investment will be lower than expected. 3. Can be divided into categories: emotional risk, relationship risk, physical risk, political risk, sovereign risk, operational risk, financial risk. 4. Risk can be reduced through preemptive action including; buying insurance, education, and experience.
1. The state of being liquid. 2. The quality of being readily convertible into cash: an investment with high liquidity. 3. Available cash or the capacity to obtain it on demand. 4. The ease with which an asset can be converted into money. Cash is liquid but shares in a company are less liquid because they must be sold in order to convert them into money. Assets such as property are even less liquid because they take longer to sell than shares.
The process of worldwide interaction and integration of people, companies, and governments. For thousands of years, people have been trading with each other across long distances and in the process shared ideas, beliefs, and culture. The opening of borders, reduction of tariffs, the free movement of people, goods and capital, music, movies, combined with reduced transportation costs and technology has accelerated global integration and the export of American cultural values. English has dominated as the global language, with a global culture of entertainment, fashion and design emerging.
1. The state of being scarce or in short supply; shortage, dearth, paucity. 2. An economic principle where resources are limited and human needs are insatiable. Even with technological advances, there are never enough resources to satisfy the ever-increasing demand, therefore, sacrifice requires giving up something, or making tradeoffs in order to obtain more of what is wanted. Competition for scarce resources is driven by the market, where prices are one way to allocate scarce resources. The tension between available resources and the money to pay for them drives people to compete to make money. Both money and time are scarce resources. Most people have too little of one, the other, or both. An unemployed person may have an abundance of time and find it difficult to pay rent. A successful executive may be financially capable of retiring whenever they want, yet eat five-minute lunches and work 20 hours a day! Other people have very little time or money. The ideal is to have an abundance of time and money, however very few people achieve it.
1. Failure to do something required by an agreement, in the performance of a duty, or under a law. 2. Failure to meet the terms of a loan agreement. 3. Failure to make repayment on the due date (generally, if a payment is 30 days overdue, the loan is in default.)
1. A financing or investment instrument issued by a company or government agency that denotes an ownership interest and provides evidence of a debt, a right to share in the earnings of the issuer, or a right in the distribution of a property. 2. An asset pledged to guaranty the repayment of a loan, satisfaction of an obligation, or in compliance with an agreement.
The process of converting an asset or pool of assets (or debt) into marketable securities in order to sell them to investors. The value and cash flows of the new security (financial instrument) are based on the underlying value and cash flows of the assets. Companies will securitize illiquid assets in order to increase their overall liquidity and generate immediate proceeds from their assets.