Recap DP August 2025

                                   

Recap Daily Points  – August 2025

 

2147. Net exports

The value of a nation's total export goods and services minus the value of all the goods and services it imports equals its net exports.

 

2148. Death Taxes

Death taxes are taxes imposed by the federal and some state governments on someone's estate upon their death. 

2149. Kontradieff Waves

Kondratieff Wave, named after Russian economist Nikolai Kondratieff, refers to cycles, lasting about 40 to 60 years, experienced by capitalist economies.

 

2150. Time-Varying Volatility

Time-varying volatility refers to the fluctuations in volatility over different time periods. Investors may choose to study or consider the volatility of an underlying security during various time periods.

 

2151. Flight to Quality

Flight to quality occurs when investors in aggregate begin to shift their asset allocation away from riskier investments and into safer ones, for instance out of stocks and into bonds. Uncertainty in the financial or international markets usually causes this herd-like behaviour.

 

2152. Deficit Spending

Deficit spending is when a government's expenditures exceed its revenues during a specific period, leading to a budget deficit, often used as a strategy to stimulate economic growth.

 

2153. Weak Dollar

A weakening dollar implies several consequences, but not all of them are negative. A weakening dollar means that imports become more expensive, but it also means that exports are more attractive to consumers in other countries outside the U.S.

 

2154. Google Tax

A Google tax, also known as a diverted profits tax, refers to anti-tax-avoidance provisions that have been introduced in some countries. Several jurisdictions implemented the provision to stop companies from diverting profits or royalties to other jurisdictions that have lower or even zero tax rates.

 

2155. Earnings Call

An earnings call is a conference call between a public company, analysts, investors, and the media to discuss the company’s financial results.

 

2156. Growth Rates

Growth rates refer to the percentage change of a specific variable within a specific time period.

 

2157. Numbered Account

Numbered accounts are bank accounts wherein the identity of the holder is replaced with a multi-digit number known only to the client and selected private bankers. Numbered accounts are those which are operated by password rather than signature.

 

2158. Unified Managed Account (UMA)

 

A unified managed account (UMA) is a professionally managed private investment account that can include multiple types of investments all in a single account.

Investments may include mutual funds, stocks, bonds, and exchange-traded funds.

Unified managed accounts are often rebalanced on a specified schedule.

 

2159. Capture Rate (Real Estate)

In real estate, capture rate refers to the percentage of potential customers or units that a specific property or development successfully attracts or "captures" from the overall market. It's a measure of how well a property is performing relative to the available market opportunity.

 

2160. Foreign Trade Zone (FTZ)

A Foreign Trade Zone (FTZ), also known as a free trade zone, is a designated area within a country where goods can be imported, stored, processed, or manufactured, and then re-exported, without being subject to customs duties or other regulations until they enter the country's domestic market.

 

2161. Amortization Schedule

An amortization schedule is a chart that tracks the falling book value of a loan or an intangible asset over time.

2162. Decile

A decile is a quantitative method of splitting up a set of ranked data into 10 equally-sized subsections.

 

2163. Inventory Turnover Ratio

Inventory turnover ratio is a financial ratio showing how many times a company turned over its inventory in a given period.

 

2164. Demurrage

It is a financial penalty charged when goods, cargo, or containers remain at a port, terminal, or depot beyond the allotted free time for loading, unloading, or clearance. It is commonly imposed by shipping lines, port authorities, or railway terminals to discourage delays in logistics operations and ensure efficient cargo movement.

 

2165. Market Index

A market index is a hypothetical portfolio of investment holdings that represents a segment of the financial market. The calculation of the index value comes from the prices of the underlying holdings. Some indexes have values based on market-cap weighting, revenue weighting, float weighting, and fundamental weighting. Weighting is a method of adjusting the individual impact of items in an index.

 

2166. Socialization

Process by which individuals acquire the knowledge, language, social skills, and value to conform to the norms and roles required for integration into a group or community. It is a combination of both self-imposed (because the individual wants to conform) and externally-imposed rules, and the expectations of the others. 

 

2167. Bail-In

A bail-in provides relief to a financial institution on the brink of failure by requiring the cancellation of debts owed to creditors and depositors.

 

2168. Producer Price Index

The Producer Price Index (PPI) measures the average change over time in the prices domestic producers receive for their output. It is a measure of inflation at the wholesale level that is compiled from thousands of indexes measuring producer prices by industry and product category.

 

2169. Regression

Regression is a statistical method that attempts to determine the strength and character of the relationship between a dependent variable and one or more independent variables.

 

2170. Price Elasticity

 

Price elasticity of demand is a measurement of the change in the demand for a product as a result of a change in its price. If a price change creates a large change in demand, that is known as elastic demand. If a price change creates a small change in demand, that is an inelastic demand.

 

2171. Trust Fund 

A trust fund is an estate planning tool that holds property or assets for a person or an organization. Trust funds are sometimes simply referred to as "trusts." They can hold a variety of assets such as money, real property, stocks, bonds, a business, or a combination of many types of properties or assets.

2172. Consular Invoice

Consular Invoice is a document, which is required by some foreign countries, that describes a shipment of goods and declares certain information such as the identities of the consignor and consignee, along with the value of the shipment.

Consular Invoices are certified by a consular official of the foreign country, and are used by the country’s customs officials to verify the value, quantity, and nature of the shipment.

The exporter provides three copies of the invoice to the consulate of the importing country. One copy is returned to the exporter, and the other two are sent to the customs office.

 

2173. Bond yield

A bond yield is the return an investor realizes on a bond. Put simply, a bond yield is the return on the capital invested by an investor.

 

2174. Swap Spread

A swap spread is the difference between the fixed component of a given swap and the yield on a sovereign debt security with a similar maturity.

 

2175. Valuation

Valuation is the analytical process of determining the current (or projected) worth of an asset or a company.

 

2176. Heteroscedasticity

In finance, conditional heteroskedasticity is often seen in the prices of stocks and bonds. The level of volatility of these equities cannot be predicted over any period. Unconditional heteroskedasticity can be used when discussing variables that have identifiable seasonal variability, such as electricity usage.

2177. Bayes' Theorem

Bayes' Theorem is a formula used to calculate conditional probability, which is the probability that an event will occur when another event does.

 

Sekhar Pariti

01-09-2025                                                                               +91 94406 41014