What is a free rider?

Free rider is an English expression used in economía, and comes to refer to those consumers of indivisible goods or services, especially public and who benefit from them without paying contraprestación any. In Spanish, it is also called the “stowaway problem”. In other words, this problem arises as when a person (stowaway) tries to receive … Read more

What is Free Trade?

Free trade or free trade is an economic approach that deals with trade between countries without any limitations between them, in order to obtain efficiency in the allocation of resources on a global scale thanks to the division of labor and specialization. Among the limitations that we can find between the markets we find the … Read more

What is an investment fund?

Investment funds are a savings tool. It consists of a patrimony that is formed with the contributions of a group of people who invest their capital in order to achieve the highest profitability possible. The aforementioned fund has the objective of gathering the money of all the participants so that a certain entity takes care … Read more

What is fundamental analysis?

The term fundamental analysis is widely used in the world of finance. It is a stock analysis methodology that establishes the value of a certain acción or title, called core value. This value is defined as an estimator of the commercial profit of said stock, which in turn is expected to be a good estimate … Read more

What is a free zone?

The meaning of the free zone is the specific geophgraphic area that is oriented to industrialization for the purpose of export. It consists of a space in the national territory where customs legislation is applied in a differentiated way or is not even applied, so that goods that come from abroad can enter and remain … Read more

What is a franchise?

Franchises are one of the most popular ways that people choose to start a business, especially in highly competitive industries. In legal and economic terms, a franchise is a type of license that one of the parties (the franchisee) acquires and that allows them to use a brand and (the franchisor) as well as have … Read more

What are financial resources?

The meaning of financial resources is the set of financial assets of a company that have a high degree of liquidity, in addition to cash. Among other things, these financial resources consist of loans to third parties, money in cash, deposits in banks, owned by actions and bonds, and currency holdings, among other things. Types … Read more

FIFO

FIFO is understood as a method of accounting designed for the valuation of inventories, whether it is products, raw materials or components. It comes from English, "first in, first out" and in Spanish it is known as the PEPS method, "first inputs, first outputs". Since inventoried goods are not bought at the same price, for … Read more

What is the Fisher rate?

The Fisher rate is a tool used in the accounting and finance area so that users can select between two investment projects which one suits them best. To do this, projects must be comparable and must be in evaluation stages. Typically used when there is a positive NPV and rate environment. Selection criteria for Fisher's … Read more