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What is Macroeconomics?

GOLDSTONE LEARN Different profit, Smarter profit. The works of our authors have appeared in the magazines of the whole world. DEFINITION: Macroeconomics is the study of the economy as a whole – for example, of a country, a continent, or the entire world. Understanding macroeconomics Macroeconomics is a branch of social science that deals with …

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What is a hedge?

GOLDSTONE LEARN Different profit, Smarter profit. The works of our authors have appeared in the magazines of the whole world. DEFINITION: In the investment world, hedging is the practice of offsetting potential losses on one asset with potential gains in another. Understanding a hedge A hedge is an investment that seeks to offset potential losses …

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What is equity?

GOLDSTONE LEARN Different profit, Smarter profit. The works of our authors have appeared in the magazines of the whole world. DEFINITION: Equity is the portion of a company or other asset owned by investors and is calculated by subtracting all outstanding liabilities from the total value. Understanding equity Equity is the portion of a business …

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What is deflation?

GOLDSTONE LEARN Different profit, Smarter profit. The works of our authors have appeared in the magazines of the whole world. DEFINITION: Deflation is the decline in the price of goods and services over time, resulting in an increase in the purchasing power of a currency. Understanding deflation Deflation occurs when the inflation rate is negative. …

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What is Interest?

GOLDSTONE LEARN Different profit, Smarter profit. The works of our authors have appeared in the magazines of the whole world. DEFINITION: Interest is the price of borrowed money – what you pay to use someone else’s money, or what you charge others to whom you lend money. Understanding interest When you borrow money, there are …

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What is Market Capitalization?

GOLDSTONE LEARN Different profit, Smarter profit. The works of our authors have appeared in the magazines of the whole world. DEFINITION: Market capitalization (also called “market cap”) is a way to measure the size of a company by multiplying the total number of shares by the share price. Understanding market capitalization Market capitalization indicates the …

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What is demand?

GOLDSTONE LEARN Different profit, Smarter profit. The works of our authors have appeared in the magazines of the whole world. DEFINITION: Demand is an expression of a consumer’s desire and means to purchase a product or service. Understanding demand Demand describes a consumer’s willingness and ability to purchase a good or service. Economists often refer …

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What is an Investment?

GOLDSTONE LEARN Different profit, Smarter profit. The works of our authors have appeared in the magazines of the whole world. DEFINITION: An investment is an asset that an individual or organization purchases with the expectation that it will produce income or profit in the future – examples of investments include stocks and real estate. Understanding investments …

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What is the Dow?

GOLDSTONE LEARN Different profit, Smarter profit. The works of our authors have appeared in the magazines of the whole world. DEFINITION: The Dow Jones Industrial Average (also known as the “Dow”) was created in 1896 and is an index that includes 30 large and respected public companies and is used to measure the stock market …

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