Monthly Archives: January 2011

Inflation

Inflation is a very common business term.  It refers to the increase in the price of the same thing over a time period.  For example, a house today might cost 1 million dollars, but the same house would have only … Continue reading

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Commodity

In the business and financial world, “commodities” are often things like oil, sugar, corn, and cotton.  They are things that are needed for many business but you can get them in nature.  Business use commodities to make more advanced products. … Continue reading

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Book Value

A Company’s “Book Value” is the amount of money it would be worth if you added up all the money it has and the estimated value if you sold all of the company’s assets (things it owns that have value). … Continue reading

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Market Capitalization

Market Capitalization is the “market value” of a company.  This is often referred to as a company’s “Market Cap”.  These terms mean the same thing.  The “market value” of a company is the “share price” times the total number of … Continue reading

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