finance - Concepts

Explore concepts tagged with "finance"

Total concepts: 9

Concepts

Compound Interest - Interest calculated on both the initial principal and the accumulated interest from previous periods, creating exponential growth of money over time.
Payback Period - The time required to recover the initial investment from a project's cash flows or benefits.
Net Present Value (NPV) - The value today of a future sum of money, accounting for the time value of money through discounting.
Unit Economics - The direct revenues and costs associated with a single unit such as one customer or product, used to assess whether a business model is fundamentally profitable and scalable.
Break-Even Analysis - Determining the point at which total revenue equals total costs, resulting in neither profit nor loss.
Giffen Good - An inferior good for which demand rises as its price rises and falls as its price falls, because the income effect outweighs the substitution effect.
Efficient Market Hypothesis - Theory stating that asset prices fully reflect all available information, making it impossible to consistently achieve above-market returns through skill or analysis.
Time Value of Money - The principle that money available now is worth more than the same amount in the future due to its earning potential.
Rule of 72 - A mental math shortcut that estimates how long it takes for an investment or quantity to double by dividing 72 by the growth rate percentage.