Froth.

In finance, froth is a term used to describe a situation where prices in a market are rising rapidly and creating a bubble. This can be caused by a number of factors, including speculation, easy credit conditions, and low interest rates. When froth is present in a market, it is often difficult to value assets … Read more

What Is an Allocation Rate?

An allocation rate is the percentage of a mutual fund’s assets that are invested in each asset class. The allocation rate is decided by the fund manager and is based on the fund’s investment objectives. What is the amount of fund allocated? The amount of fund allocated is determined by the mutual fund company. The … Read more

Diseconomies of Scale Definition: Causes and Types Explained.

Diseconomies of Scale: Causes and Types. What are the causes of diseconomies of scale in economics? There are several potential causes of diseconomies of scale in economics. One cause could be diminishing returns to scale. This occurs when, as output increases, the marginal (or extra) output from an additional unit of input decreases. For example, … Read more