Global Business & Economics Terms

A financial statement showing a company's assets, liabilities, and shareholders' equity at a specific point in time.

A market condition where prices are falling or expected to fall, typically defined as a 20% or more decline from recent highs.

A market condition where prices are rising or expected to rise, characterized by optimism and investor confidence.

Interest calculated on both the initial principal and the accumulated interest from previous periods.

An investment strategy that spreads investments across various assets to reduce risk.

A measure of how much the quantity demanded or supplied of a good responds to changes in price or other factors.

Government policy regarding taxation and spending to influence economic conditions.

A pact between countries to reduce or eliminate barriers to trade such as tariffs and quotas.

The total monetary value of all finished goods and services produced within a country's borders in a specific time period.

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.

The process through which a private company offers shares to the public for the first time.

The ease with which an asset can be converted into cash without significantly affecting its price.

The total market value of a company's outstanding shares of stock, calculated by multiplying share price by total shares.

The process by which a central bank controls the money supply and interest rates to achieve macroeconomic objectives.

A financial statement summarizing revenues, costs, and expenses over a period to show net profit or loss.

A significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in GDP, income, employment, and production.

A performance measure used to evaluate the efficiency of an investment, calculated as (Gain - Cost) / Cost × 100.

The fundamental economic model describing the relationship between the availability of a product and the desire for it.

A tax imposed on imported goods and services, designed to protect domestic industries or generate revenue.

Financing provided to startups and early-stage companies with high growth potential in exchange for equity.