What is the Random Walk Theory? The Random Walk Theory or Random Walk Hypothesis is a financial theory that states the prices of securities in a stock market are random and not influenced by past events. It suggests the price movement of the stocks cannot be predicted on the basis of its past movements or trend. How Does the Random Walk Theory Work?...

What is the Shelter Principle - Section 2-403(1)? The shelter principle offers additional protections for buyers of collateral from other consumers. Basically, this equitable principle states that a good faith purchaser of property acquires all of the rights that the transferor of that property. The shelter rule will provide the purchaser with a cla...

What is Prescriptive Analytics? Prescriptive analytics is a method of finding the best course of action for a given situation based on the available data. This form of analytics uses technology, mathematical method and simulation algorithms to help a business make the best decision in specific situations. Prescriptive analytics is the final phase of...

What is an Associate of the Institute of Chartered Secretaries & Administrators (UK)? The Institute of Chartered Secretaries is commonly known as the ICSA, and it's a professional body that certifies company secretaries by using examination and post qualification programs....

What is Nationalization? Nationalization is when a company or an industry which was formerly privately owned is taken over by the government. This can be with or without paying any compensation to the private owners. ...

What is the Duty of Care? The first element of a negligence tort is establishing the nature and extent of the defendant's duty to the plaintiff. What is a Legal Duty under Tort Law? A duty generally arises pursuant to one's conduct or activity, such as assuming a position of authority, control, or other special relationship with someone.  Any form o...

Why do Parties Negotiate? Negotiations result from actual or perceived conflicts of interest or objectives between two parties. The intent is to better ones current position (further their interests or objectives) by achieving mutual assent with regard to differing perceived interests or objectives.  The parties may desire to: align their actions (o...

What is a Constituent Relationship in a Negotiation? Constituent, the party whom the principal represents, is ostensibly on the same side as a principal, but exerts independent influence on the outcome through the principal. The challenges for constituent relationships include: Identification - Often it is difficult to identify individuals in a cons...

What is a Promissory Notes? Any commercial loan will require a debt instrument (known as a promissory note) evidencing the debt and outlining the obligations of the borrower to repay the funds. These documents will generally include all relevant terms of the lending relationship, including interest rate and repayment schedule. As previously mentione...

How does Domestic Saving and Investment Determine the Trade Balance? One insight from the national saving and investment identity is that a nation's own levels of domestic saving and investment determine a nation’s balance of trade. To understand this point, rearrange the identity to put the balance of trade all by itself on one side of the equation...