Basic business strategies
Key strategies a firm intends to pursue in carrying out its business plan. |
Similar financial terms
Basic balanceIn a balance of payments, the basic balance is the net balance of the combination of the current account and the capital account.
Basic IRR rule
Accept the project if IRR is greater than the discount rate; reject the project is lower than the discount rate.
Business cycles
The patterns of fluctuation in growth patterns experienced by business caused by overall econimoc and financial trends, competitive forces and the nature of supply and demand. Cycles are predictable in patterns but not always in durations.
Business ethics
The application of moral standards to business situations.
Business cycle
Repetitive cycles of economic expansion and recession.
Business failure
A business that has terminated with a loss to creditors.
Business risk
The risk that the cash flow of an issuer will be impaired because of adverse economic conditions, making it difficult for the issuer to meet its operating expenses.
International Business Company (IBC)
An IBC is a corporation formed (incorporated) under a Company Act of a tax haven, but not authorized to do business within that country of incorporation; intended to be used for global operations. Owned by member(s)/shareholder(s). Has the usual corporate attributes.
Yield spread strategies
Strategies that involve positioning a portfolio to capitalize on expected changes inyield spreads between sectors of the bond market.
Yield curve strategies
Positioning a portfolio to capitalize on expected changes in the shape of the Treasury yield curve.
Naked option strategies
An unhedged strategy making exclusive use of one of the following: Long call strategy (buying call options ), short call strategy (selling or writing call options), Long put strategy (buying put options ), and short put strategy (selling or writing put options). By themselves, these positions are called naked strategies because they do not involve an offsetting or risk-reducing position in another option or the underlying security.
Liability funding strategies
Investment strategies that select assets so that cash flows will equal or exceed the client's obligations.
Covered or hedge option strategies
Strategies that involve a position in an option as well as a position in the underlying stock, designed so that one position will help offset any unfavorable price movement in the other, including covered call writing and protective put buying.
