Understanding Financial Risk in Investments

Posted by on Aug 15, 2025 in Economy | 0 comments

What is Financial Risk?

Risk is defined in financial terms as the chance that an outcome or investment’s actual gains will differ from an expected outcome or return. Risk includes the possibility of losing some or all of an original investment.

Basics of Investment Risk

Each investor has a unique risk profile that determines their willingness and ability to withstand risk. In general, as investment risks rise, investors expect higher returns to compensate for taking those risks.

Key Takeaways on Risk

  • Risk
Read More

Business and Finance Terminology Explained

Posted by on Aug 13, 2025 in Economy | 0 comments

A period of stock market speculation ended dramatically in October 1929…

1. depression, 2. expanded, 3. upturns, 4. downturns, 5. boom, 6. peak, 7. recession, 8. contracted, 9. recovery

The traditional definition of auditing is a review and an evaluation…

1. exactness, 2. departures, 3. a firm’s established methods for recording business, 4. independent, 5. judge, 6. most senior executives and advisors, 7. approved, 8. owner’s of the company’s equity, 9. company’s yearly assembly, 10. inadequacies,

Read More

Eurozone Economic Crises and COVID-19: Policy Responses and Lessons

Posted by on Aug 11, 2025 in Economy | 0 comments

The Three Crises of the Eurozone

Stage 1: The Global Financial Crisis

Following the Great Depression, strict regulation was designed to limit risk. The deregulation phase started in the 1980s, followed by a rapid expansion of financial sectors in the USA and Europe. Banks became active investors, leading to issues like:

  • Maturity mismatch
  • Currency mismatch

During the Great Moderation, banks took major risks, including providing house mortgages to high-risk individuals in the US. When house prices stopped

Read More

The Power of Interconnectedness: Global Systems and Societal Examples

Posted by on Aug 7, 2025 in Economy | 0 comments

Interdependence in security: to improve in security, nations frequently create
alliances and cooperate on defense. For example with military training and/or
peacekeeping missions. The last example is the interdependence that
members of NATO have.
– Interdependence on the environment: countries must work together to
address shared environmental concerns, such as decarbonization, climate
change or biodiversity preservation. A good example of this is the Paris
Agreement.
– Scientific and technological interdependence:
Read More

Financial Statement Analysis: Assess Business Performance

Posted by on Aug 4, 2025 in Economy | 0 comments

Introduction to Financial Statement Analysis

Financial Statement Analysis is a critical process in financial management that involves a detailed examination of the financial information contained in a company’s financial statements to assess its performance, financial health, and future prospects. It helps stakeholders, such as management, investors, creditors, and analysts, to make informed decisions based on the company’s financial data.

Concept of Financial Statement Analysis

Financial Statement

Read More

Macroeconomic Principles: GDP, Inflation, and Economic Indicators

Posted by on Aug 3, 2025 in Economy | 0 comments

Macroeconomics: Understanding the Wider Economy

Macroeconomics deals with the wider economy, focusing on key areas:

Key Macroeconomic Concerns

  • Employment: Why does unemployment reduce production and employment, and how can unemployment be reduced?
  • Prices: What are the causes of the rise in general prices (inflation)? How can inflation be controlled?
  • Production: How can a country’s economic growth be increased?

Essential Economic Indicators

  • Production: Gross Domestic Product (GDP) measures the total output
Read More