What Does Dry Powder Mean?

Dry powder is a term used to describe the amount of cash that a company has on hand to invest or use for other purposes. It is also used as a measure of a company’s financial health. A company’s dry powder can be used for a variety of purposes, including acquiring other businesses, investing in … Read more

What is Engel’s Law?

Engel’s Law is an economic principle that states that as income increases, the proportion of income spent on food decreases. In other words, as people’s incomes rise, they spend a smaller percentage of their income on food. This law is named after German economist Ernst Engel, who first proposed it in 1857. There are a … Read more

Capital Pool Company (CPC).

A capital pool company (CPC) is a type of special purpose vehicle/issuer that is created for the sole purpose of raising capital to invest in a new or emerging company. A CPC is typically sponsored by an investment dealer and is formed as a shell company with no significant operations or assets. The sole purpose … Read more

What is offshoring?

The concept of offshoring is the relocation that a company makes when it moves its factories or production systems to another country or territories. It is a process that is the result of globalization. An example of this are the companies that until recently produced in Europe, but that in view of the salary advantages … Read more