What Is Micro Accounting? Micro accounting is defined as the branch of accounting performed at a personal, corporate, or divisional level. It is the opposite of macro accounting, which is the compilation of national accounts or macroeconomic data of a country. Key Takeaways Micro accounting refers to the process of recording financial transactions of a
What Is a Micro Cap? A micro-cap is a publicly-traded company in the U.S. that has a market capitalization between approximately $50 million and $300 million. Micro-cap companies have greater market capitalization than nano caps, and less than small-, mid-, large- and mega-cap corporations. Companies with larger market capitalization do not automatically have stock prices
What Is Microcredit? Microcredit is a common form of microfinance that involves an extremely small loan given to an individual to help them become self-employed or grow a small business. These borrowers tend to be low-income individuals, especially from less developed countries (LDCs). Microcredit is also known as “microlending” or “microloan.” Key Takeaways Microcredit is a
What Is Microeconomics? Microeconomics is the social science that studies the implications of incentives and decisions, specifically about how those affect the utilization and distribution of resources. Microeconomics shows how and why different goods have different values, how individuals and businesses conduct and benefit from efficient production and exchange, and how individuals best coordinate and
What Is a Microenterprise? The term microenterprise, also known as a microbusiness, refers to a small business that employs few people. A microenterprise usually operates with fewer than 10 people and is started with a small amount of capital advanced from a bank or other organization. Most microenterprises specialize in providing goods or services for
What Is a Micro-Hedge? A micro-hedge is an investment technique used to eliminate the risk of a single asset from a larger portfolio. In most cases, a micro-hedge involves taking an offsetting position in that single asset. Offsetting positions can include taking short positions in similar shares, or options or futures contracts of that same
What is Microinsurance? Microinsurance products offer coverage to low-income households or to individuals who have little savings. It is tailored specifically for lower valued assets and compensation for illness, injury, or death. How Microinsurance Works As a division of microfinance, microinsurance looks to aid low-income families by offering insurance plans tailored to their needs. Microinsurance is often
What Is a Micro-Investing Platform? A micro-investing platform is an application that allows users to regularly save small sums of money. Micro-investing platforms aim to remove traditional barriers to investing, such as brokerage account minimums, and encourage people to invest even if they have limited incomes and assets. Key Takeaways By making investing simple and
What Is a Merchant Account? A merchant account is a type of business bank account that allows a business to accept and process electronic payment card transactions. Merchant accounts require a business to partner with a merchant acquiring bank who facilitates all communications in an electronic payment transaction. Merchant account relationships are essential for online
What Is a Merchant Agreement? A merchant agreement is a contract governing the relationship between a business and the merchant acquiring bank it partners with. This document details the full range of electronic payment services that the merchant acquiring bank agrees to provide. In most cases, such banks are responsible for facilitating every aspect of
