What Are Production Externalities? Production externality refers to a side effect from an industrial operation, such as a paper mill producing waste that is dumped into a river. Production externalities are usually unintended, and their impacts are typically unrelated to and unsolicited by anyone. They can have economic, social, or environmental side effects. Production externalities can…
What Is Permission Marketing? Permission marketing refers to a form of advertising where the intended audience is given the choice of opting in to receive promotional messages. The concept of permission marketing has been popularized by Seth Godin, an entrepreneur and author. He first discussed the idea of permission marketing at length in his book…
What Is a Call to Action (CTA)? A call to action (CTA) is a marketing term that refers to the next step a marketer wants its audience or reader to take. The CTA can have a direct link to sales. For example, it can instruct the reader to click the buy button to complete a sale, or it can simply move the…
Dark pools are private exchanges for trading securities that are not accessible by the investing public. Also known as “dark pools of liquidity,” the name of these exchanges is a reference to their complete lack of transparency. Dark pools came about primarily to facilitate block trading by institutional investors who did not wish to impact the…
Semiconductor giant Intel Corporation (INTC) has a winning streak of beating earnings per share (EPS) estimates in 24 consecutive quarters. Even so, the stock is in bear market territory at 24.4% below its 52-week high of $69.29 set on Jan. 24. At the same time, the stock is in bull market territory at 20% above…
What Is the Frequency-Severity Method? Frequency-severity method is an actuarial method for determining the expected number of claims that an insurer will receive during a given time period and how much the average claim will cost. Frequency-severity method uses historical data to estimate the average number of claims and the average cost of each claim. The…
What Is a Defensive Stock? A defensive stock is a stock that provides consistent dividends and stable earnings regardless of the state of the overall stock market. There is a constant demand for their products, so defensive stocks tend to be more stable during the various phases of the business cycle. Defensive stocks should not…
The Walt Disney Company (DIS) is one of the largest diversified international companies specializing in entertainment, media, parks, resorts, and various consumer products. Disney owns some of the most recognized TV channels in the U.S., including Disney, ABC, and ESPN. The company also operates highly popular amusement parks around the world and produces movies, cartoons,…
There are several ways companies can raise funds, including stocks and bonds. Corporations can also choose which kinds of stock they offer to the public. They base that decision on the type of relationship they want with shareholdersthe cost of the issue, and the need prompting the financing. When it comes to raising capital, some…