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Difference Between Market Value And Replacement Value Of A Company
Introduction Before understanding the difference between the market value and replacement value, let us revise their basic definitions. What is market value Market value is defined as the price at which the share of a company can be brought or sold on real time. It is the value of an asset in the marketplace. Market…
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What Is The Difference Between Arbitrage And Trading
Introduction Before understanding the difference between arbitrage and trading, let us revise their basic definition. What is arbitrage Arbitrage is defined as the simultaneous buying and selling of the same item in multiple marketplaces, in order to profit from small price differentiation. It takes advantage of short-term price fluctuations in same or comparable financial products…
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How To Make Money In Real Estate Using Options Contract
Introduction What is an options contract Real Estate Options contract is a type of a legal agreement which states that a buyer can hold a right to buy the asset at a pre-decided price from the seller. Thus, in order for the contract to be executed, the buyer needs to pay a fee to the…
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What Is The Difference Between Depository Participant And Stock Broker
Introduction A depository participant and a stock broker are two of the many market participants in the world of stock trading. Hence, each of these participants have a defined role to serve to the investors and ease the process of stock trading in a smooth and efficient manner. You might also like: What Is The…
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How To Avoid Gambler’s Fallacy While Investing For Long Term
What is Gambler’s Fallacy Gambler’s Fallacy is defined as a prediction of completely random occurrences based on what has happened in the past, or creating patterns where none exist. It is a common misconception that if something occurs more frequently than usual during a given time, it will occur less frequently in the future, or…
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How To Increase The Accounts Receivable Turnover Of A Company
What is Accounts Receivable Turnover Accounts receivable turnover is a ratio that is used to determine if a company is actually receiving the cash or cash equivalent in their bank account after selling their products / services. Accountants and analysts use accounts receivable turnover to determine how well a company collects on the credit it…
