What Are Switching Costs? Switching costs are the costs that a consumer incurs as a result of changing brands, suppliers, or products. Although most prevalent switching costs are monetary in nature, there are also psychological, effort-based, and time-based switching costs. Key Takeaways Switching costs are the costs a consumer pays as a result of switching
What Is SWOT Analysis? SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to evaluate a company’s competitive position and to develop strategic planning. SWOT analysis assesses internal and external factors, as well as current and future potential. A SWOT analysis is designed to facilitate a realistic, fact-based, data-driven look at the strengths
What is a Symmetrical Triangle A symmetrical triangle is a chart pattern characterized by two converging trend lines connecting a series of sequential peaks and troughs. These trend lines should be converging at a roughly equal slope. Trend lines that are converging at unequal slopes are referred to as a rising wedge, falling wedge, ascending
What Is a Syndicate? A syndicate is a temporary alliance of businesses that joins together to manage a large transaction, which would be difficult, or impossible, to effect individually. Syndication makes it easy for companies to pool their resources and share risks, as when a group of investment banks works together to bring a new
What is a Syndicate Bid? A syndicate bid is a bid offered by a member of a banking syndicate to stabilize the price of a stock before its secondary offering on the NASDAQ exchange. Syndicate bids help manage the entry of new shares into the market without leading to a dangerous drop in the price
What Is a Syndicated Loan? A syndicated loan, also known as a syndicated bank facility, is financing offered by a group of lenders—referred to as a syndicate—who work together to provide funds for a single borrower. The borrower can be a corporation, a large project, or a sovereign government. The loan can involve a fixed
What Is Synergy? Synergy is the concept that the combined value and performance of two companies will be greater than the sum of the separate individual parts. Synergy is a term that is most commonly used in the context of mergers and acquisitions (M&A). Synergy, or the potential financial benefit achieved through the combining of
What is a Synthetic Call? A synthetic call is an options strategy that uses stock shares and put option to simulate the performance of a call option. This gives the investor a theoretically unlimited growth potential with a specific limit to the amount risked. Key Takeaways A synthetic call is an option strategy to create
What Is a Synthetic CDO? A synthetic CDO is a financial product that invests in non-cash assets such as swaps, options, and insurance contracts to obtain exposure to a portfolio of fixed-income assets. It is one kind of collateralized debt obligation (CDO). A CDO is a financial product structured by banks that pool and package
What Is a Synthetic Dividend? A synthetic dividend is an investment strategy in which investors use various financial instruments to create a stream of income mimicking that provided by dividend-paying companies. A common example of this strategy consists of selling covered call options against a portfolio of non-dividend-paying companies. In doing so, the investor would
