What are retained earnings?

Retained earnings or retained earnings are those benefits that the company has earned and that instead of being distributed among the shareholders, they decide to invest in the company itself. These earnings can be used to achieve further growth of the company, such as increasing the workforce, improving the budget dedicated to research or to … Read more

What is systematic risk?

The term systematic risk is also known as undiversifiable risk or market risk, and refers, as the name suggests, to the financial asset that is publicly traded and its risk cannot be reduced. This type of risk depends a lot on the situation of the market in which we find ourselves, since there will be … Read more

What is offshoring?

The definition of relocation is the practice carried out by companies that move their specific work centers or certain areas to other territories that carry a minor coste for them, while improving the company's competitive capacity and increasing the profit margin. In general they are usually multinationals. The concept of offshoring is considered a consequence … Read more

Definition of rational purchases

How do consumers act when buying a product? What makes us make the final purchase decision? Are we carried away by impulses or are we carried away by needs? Behind every purchase decision there is always an explanation. This is the case of rational purchases, those that have finally been carried out because they have … Read more

Royalty Deficiency

In economics and finance, talk about Royalty or regalía It is talking about the payment that must be made for the fact of using the property of a third party. This term is used especially when talking about patents, works subject to copyright or attribution rights, franchises or even the use of certain natural resources. … Read more

What is a royalty?

The royalty term refers to the payment of an economic amount that one person owes another due to the fact that a right that does not belong to them is economically exploited, but to the person who is going to pay them. contraprestación. Those assets that generally tend to generate royalties more frequently (and the … Read more

What is retirement?

It is the action in which a person ceases their work activities and becomes inactive for different reasons, such as age or physical problems that prevent them from continuing to work. At the end of your Laboral life people have no income from their work. That is why retirees receive a monthly pension for life. … Read more

What is the Relative Strength Index (RSI)

En economía there are many indicators that are capable of measuring anything in order to do things well. The next term will help us look at the price of an asset. Specifically, the acronym RSI refers to Relative Strength Index, or what is the same, Relative Strength Index. This index ranges from 0 to 100 … Read more

What is the registered office

The registered office is the place, the specific address in which a company conducts the management and direction of its activity. Unlike the tax address, which all taxpayers have, the registered office is a term more related to legal persons. Specifically, the definition of the registered office according to the Capital Companies Act is as … Read more

What is the Sharpe Ratio and how to calculate it?

The Sharpe Ratio is a ratio that measures the profitability There is an excess average (difference between the profitability of a given portfolio and that of a risk-free asset), per unit of total risk that a portfolio can bear. This meter can indicate the quality of a Investment fund, since it compares them with others … Read more