How the Vasicek Interest Rate Model Works.

The Vasicek interest rate model is a mathematical model used to describe the evolution of interest rates over time. The model is named after its creator, Czech-American economist Oldrich Vasicek. The Vasicek model is a popular choice for modelling interest rates because it is relatively simple to understand and implement. The model is also easy … Read more

Vertical Merger Definition.

A vertical merger is defined as a merger between companies that operate at different stages of the same production process. For example, a company that manufactures car parts may merge with a company that assembles cars. Vertical mergers can also occur between companies that provide complementary goods or services. For example, a company that provides … Read more

What Is the Collateral Source Rule?

The collateral source rule is a rule that says that a debt collector cannot reduce the amount of a debt that is owed by the amount of any payments that the debtor has already received from a collateral source. For example, if a debtor owes $1,000 to a creditor, but the debtor has already received … Read more

What Does Pure Play Mean?

A pure play is a company that focuses on a single line of business. This allows investors to more easily predict how the company will perform, since it isn’t diversified and therefore isn’t as affected by factors outside its core business. For example, a company that focuses on selling electric vehicles would be a pure … Read more