What Is the Producer Price Index (PPI)?The producer price index (PPI) measures the average change over time in the prices domestic producers receive for their output. As such, it measures inflation at the wholesale level of the economy compiled from thousands of indexes measuring producer prices by industry and product category. The index is published monthly by the U.S. Bureau of Labor Statistics (BLS), The PPI is different from the consumer price index (CPI), which measures the sale price o...

What Is the Producer Price Index (PPI)?The producer price index (PPI) measures the average change over time in the prices domestic producers receive for their output. As such, it measures inflation at the wholesale level of the economy compiled from thousands of indexes measuring producer prices by industry and product category. The index is published monthly by the U.S. Bureau of Labor Statistics (BLS), The PPI is different from the consumer price index (CPI), which measures the sale price o...

What Is a Free Trade Agreement (FTA)?A free trade agreement is a pact between two or more nations to reduce barriers to imports and exports among them. Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange. The concept of free trade is the opposite of trade protectionism or economic isolationism. 0 seconds of 1 minute, 25 secondsVolume 75% 1:25Free Tra...

What Is a Free Trade Agreement (FTA)?A free trade agreement is a pact between two or more nations to reduce barriers to imports and exports among them. Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange. The concept of free trade is the opposite of trade protectionism or economic isolationism. 0 seconds of 1 minute, 25 secondsVolume 75% 1:25Free Tra...

What Is Moving Average Convergence Divergence (MACD)?Moving average convergence divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price. The MACD is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA. The result of that calculation is the MACD line. A nine-day EMA of the MACD called the "signal line," is then plotted on top of the MACD line, which can function as a trig...

What Is Moving Average Convergence Divergence (MACD)?Moving average convergence divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price. The MACD is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA. The result of that calculation is the MACD line. A nine-day EMA of the MACD called the "signal line," is then plotted on top of the MACD line, which can function as a trig...

What Is a Kiosk?A kiosk refers to a small, temporary, stand-alone booth used in high-traffic areas for marketing purposes. A kiosk is usually manned by one or two individuals who help attract attention to the booth to get new customers. Retail kiosks are frequently located in shopping malls or on busy city streets with significant foot traffic and provide owners with a low-cost alternative to market their products or services.KEY TAKEAWAYSA kiosk refers to a small, temporary, stand-alone boot...

What Is a Kiosk?A kiosk refers to a small, temporary, stand-alone booth used in high-traffic areas for marketing purposes. A kiosk is usually manned by one or two individuals who help attract attention to the booth to get new customers. Retail kiosks are frequently located in shopping malls or on busy city streets with significant foot traffic and provide owners with a low-cost alternative to market their products or services.KEY TAKEAWAYSA kiosk refers to a small, temporary, stand-alone boot...

What Is a Yankee Bond?A Yankee bond is a debt obligation issued by a foreign entity, such as a government or company, which is traded in the United States and denominated in U.S. dollars.KEY TAKEAWAYSA Yankee bond is a debt obligation denominated in U.S. dollars that is publicly issued in the U.S. by foreign banks and corporation, and sometimes even governments.Yankee bonds are subject to U.S. securities laws, as they trade on U.S. exchanges.Yankee bonds offer the issuer to chance to get chea...

What Is a Yankee Bond?A Yankee bond is a debt obligation issued by a foreign entity, such as a government or company, which is traded in the United States and denominated in U.S. dollars.KEY TAKEAWAYSA Yankee bond is a debt obligation denominated in U.S. dollars that is publicly issued in the U.S. by foreign banks and corporation, and sometimes even governments.Yankee bonds are subject to U.S. securities laws, as they trade on U.S. exchanges.Yankee bonds offer the issuer to chance to get chea...

Investopedia / Matthew Collins Bernard Lawrence "Bernie" Madoff was an American financier who executed the largest Ponzi scheme in history, defrauding thousands of investors out of tens of billions of dollars over the course of at least 17 years, possibly longer. He was also a pioneer in electronic trading and chair of the Nasdaq in the early 1990s. He died in prison at age 82 on April 14, 2021, while serving a 150-year sentence for money laundering, securities fraud, and several other feloni...

Investopedia / Matthew Collins Bernard Lawrence "Bernie" Madoff was an American financier who executed the largest Ponzi scheme in history, defrauding thousands of investors out of tens of billions of dollars over the course of at least 17 years, possibly longer. He was also a pioneer in electronic trading and chair of the Nasdaq in the early 1990s. He died in prison at age 82 on April 14, 2021, while serving a 150-year sentence for money laundering, securities fraud, and several other feloni...

What Is a Balance Sheet?The term balance sheet refers to a financial statement that reports a company's assets, liabilities, and shareholder equity at a specific point in time. Balance sheets provide the basis for computing rates of return for investors and evaluating a company's capital structure. In short, the balance sheet is a financial statement that provides a snapshot of what a company owns and owes, as well as the amount invested by shareholders. Balance sheets can be used w...

What Is a Balance Sheet?The term balance sheet refers to a financial statement that reports a company's assets, liabilities, and shareholder equity at a specific point in time. Balance sheets provide the basis for computing rates of return for investors and evaluating a company's capital structure. In short, the balance sheet is a financial statement that provides a snapshot of what a company owns and owes, as well as the amount invested by shareholders. Balance sheets can be used w...

What Was the Industrial Revolution?The Industrial Revolution was a period of major industrialization and innovation during the late 1700s and early 1800s. The Industrial Revolution began in Great Britain and quickly spread throughout the world.1 The American Industrial Revolution commonly referred to as the Second Industrial Revolution, started sometime between 1820 and 1870. This period saw the mechanization of agriculture and textile manufacturing and a revolution in power, including steams...

What Was the Industrial Revolution?The Industrial Revolution was a period of major industrialization and innovation during the late 1700s and early 1800s. The Industrial Revolution began in Great Britain and quickly spread throughout the world.1 The American Industrial Revolution commonly referred to as the Second Industrial Revolution, started sometime between 1820 and 1870. This period saw the mechanization of agriculture and textile manufacturing and a revolution in power, including steams...

What Is the Yale School of Management?Yale School of Management (Yale SOM) is Yale University's graduate business school. Yale School of Management offers both MBA and Ph.D. level programs and is known for, among other things, its focus on finance and ethics. The school introduced a new kind of integrated curriculum that combines a brief period of foreign study with organizational and employee analysis.1 KEY TAKEAWAYSThe Yale School of Management (Yale SOM) is Yale University's busi...

What Is the Yale School of Management?Yale School of Management (Yale SOM) is Yale University's graduate business school. Yale School of Management offers both MBA and Ph.D. level programs and is known for, among other things, its focus on finance and ethics. The school introduced a new kind of integrated curriculum that combines a brief period of foreign study with organizational and employee analysis.1 KEY TAKEAWAYSThe Yale School of Management (Yale SOM) is Yale University's busi...

What Is Price Elasticity of Demand?Price elasticity of demand is a measurement of the change in the consumption of a product in relation to a change in its price. Expressed mathematically, it is:*Price Elasticity of Demand = Percentage Change in Quantity Demanded / Percentage Change in Price *Economists use price elasticity to understand how supply and demand for a product change when its price changes.1KEY TAKEAWAYSPrice elasticity of demand is a measurement of the change in consumption of a...

What Is Price Elasticity of Demand?Price elasticity of demand is a measurement of the change in the consumption of a product in relation to a change in its price. Expressed mathematically, it is:*Price Elasticity of Demand = Percentage Change in Quantity Demanded / Percentage Change in Price *Economists use price elasticity to understand how supply and demand for a product change when its price changes.1KEY TAKEAWAYSPrice elasticity of demand is a measurement of the change in consumption of a...

What Is the Russell 2000 Index?The term Russell 2000 Index refers to a stock market index that measures the performance of the 2,000 smaller companies included in the Russell 3000 Index. The Russell 2000 is managed by FTSE Russell and is widely regarded as a bellwether of the U.S. economy because of its focus on smaller companies that focus on the U.S. market. Many investors compare small-cap mutual funds against the index's movement as it is seen as a reflection of opportunities in that...

What Is the Russell 2000 Index?The term Russell 2000 Index refers to a stock market index that measures the performance of the 2,000 smaller companies included in the Russell 3000 Index. The Russell 2000 is managed by FTSE Russell and is widely regarded as a bellwether of the U.S. economy because of its focus on smaller companies that focus on the U.S. market. Many investors compare small-cap mutual funds against the index's movement as it is seen as a reflection of opportunities in that...

What Is the Zero-Volatility Spread (Z-Spread)?The Zero-volatility spread (Z-spread) is the constant spread that makes the price of a security equal to the present value of its cash flows when added to the yield at each point on the spot rate Treasury curve where cash flow is received. In other words, each cash flow is discounted at the appropriate Treasury spot rate plus the Z-spread. The Z-spread is also known as a static spread.Formula and Calculation for the Zero-Volatility SpreadTo calcul...

What Is the Zero-Volatility Spread (Z-Spread)?The Zero-volatility spread (Z-spread) is the constant spread that makes the price of a security equal to the present value of its cash flows when added to the yield at each point on the spot rate Treasury curve where cash flow is received. In other words, each cash flow is discounted at the appropriate Treasury spot rate plus the Z-spread. The Z-spread is also known as a static spread.Formula and Calculation for the Zero-Volatility SpreadTo calcul...