Rate Of Return Regulation

Rate Of Return Regulation

What Is Rate of Return Regulation? Rate of return regulation is a form of price setting regulation where governments determine the fair price which is allowed to be charged by a monopoly. It is meant to protect customers from being charged higher prices due to the monopoly’s power while still allowing the monopoly to cover

Ratings Provider

Ratings Provider

DEFINITION of Ratings Service Ratings range from AAA or Aaa (the highest) to C or D, which represents a company that has already defaulted. BREAKING DOWN Ratings Service While fixed income and bonds investments can inject a measure of diversification in a common stock portfolio, these vehicles can be complicated, with variant risk profiles. A standardized ratings

Definition, Types, Examples, and Simple find out how to Use

Definition, Types, Examples, and Simple find out how to Use

What Is Ratio Analysis? Ratio analysis is a quantitative method of gaining insight into a company’s liquidity, operational efficiency, and profitability by studying its financial statements such as the balance sheet and income statement. Ratio analysis is a cornerstone of fundamental equity analysis. Key Takeaways Ratio analysis compares line-item data from a company’s financial statements

Rational Expectations Concept Definition and How It Works

Rational Expectations Concept Definition and How It Works

What Is Rational Expectations Theory? The rational expectations theory is a concept and modeling technique that is used widely in macroeconomics. The theory posits that individuals base their decisions on three primary factors: their human rationality, the information available to them, and their past experiences. The theory suggests that people’s current expectations of the economy

Definition, Accounting, and Direct vs. Indirect

Definition, Accounting, and Direct vs. Indirect

What Are Raw Materials? Raw materials are materials or substances used in the primary production or manufacturing of goods. Raw materials are commodities that are bought and sold on commodities exchanges worldwide. Businesses buy and sell raw materials in the factor market because raw materials are factors of production. Key Takeaways Raw materials are the input goods or inventory