Glossary

0.0 00 What is the ‘Acid-Test Ratio’? The acid-test ratio is a strong indicator of whether a firm has sufficient short-term assets to cover its immediate liabilities. Commonly known as the quick ratio, this metric is more …

0.0 00 What is a ‘Stop-Loss Order’? An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit an investor’s loss on a position …

0.0 00   What is ‘Contango’? Contango is a situation where the futures price of a commodity is above the expected future spot price. Contango refers to a situation where the future spot price is below …

0.0 00 What is ‘Marginal Utility’? Marginal utility is the additional satisfaction a consumer gains from consuming one more unit of a good or service. Marginal utility is an important economic concept because economists use it …

0.0 00 What is a ‘Revolving Credit’? Revolving credit is a line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually …