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What Is Monopolistic Competition

Monopolistic competition is a type of market structure in which there are many firms selling products that are similar but not identical. The key...

Degrees of Freedom in Statistics Explained

In statistics, the number of degrees of freedom is the number of values in a data set that are free to vary. It’s an...

What Is the Current Ratio

The current ratio is a liquidity ratio that measures a company's ability to pay short-term and long-term obligations. The current ratio is calculated by...

What Is the Head and Shoulders Pattern

The head and shoulders pattern is one of the most reliable and well-known reversal patterns in technical analysis. The basic idea behind this pattern...

What Is a Profit and Loss (P&L) Statement

A profit and loss (P&L) statement is a financial statement that summarizes the revenues, costs, and expenses incurred during a given period of time,...

What Is a Hedge

A hedge is an investment position intended to offset potential losses or gains that may be incurred by a companion investment. In simple terms,...

What Is Working Capital

Working capital is a business term that refers to the money used to finance a company's day-to-day operations. It is the difference between a...

What Is a Current Account Deficit

A current account deficit is when a country's imports exceed its exports. This happens when the value of a country's currency decreases, making imports...

What Is a Stock Split

A stock split is a corporate action in which a company divides its existing shares into multiple new shares to boost liquidity and encourage...

What Is Insurance – How Insurance Works

Insurance is a complex and necessary part of life in the modern world. We all know we need it, but do we really understand...

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