What is spread?

The term spread in economics refers to the difference between the bid and ask price for a specific security. It can be used as an indicator of the liquidity of a security, where lower spreads would reflect more liquidity, although it is possible that it is also altered by other conditions. In the field of … Read more

What is dation in payment?

The dation in payment consists of delivering a thing in payment of a debt. For this to occur, as a general rule, it is necessary that the creditor agree to receive the thing in payment. When we speak of dation in payment, we are usually referring to the mortgage market and the cases in which … Read more

What is capital?

In commercial law, social capital is understood as the set of goods and values ​​that are part of a company. And as a whole, the capital stock of a company is included in what we know as the liability of the situation balance. In this way, understanding the meaning of social capital is to understand … Read more

What is subordinated debt?

A definition of subordinated debt is the long-term financial product for which an investment is made, usually with a profitability higher than that of other current debt assets, such as bonds, and linked to the financial performance of the issuing company. It is also known as a hybrid capital title, since it has the characteristics … Read more

What is SEO?

SEO is a term that comes from English, specifically from the expression Search Engine Optimization, which translated into Spanish would be Search Engine Optimization. It refers to the set of techniques used to improve the search engine position of a web page. These techniques will vary according to the algorithms used by each search engine … Read more

What is a split?

The financial meaning of Split is an adjustment made to the value of the actions of a company, without modifying the composition of the shareholders. This is a decrease in the value of each share and increase their number, respecting the monetary proportion of investors. It is also known as a stock split. With the … Read more

What is a synergy?

There are terms that in the economía They are of relevant importance or their meaning has a different value than that applied to other aspects. When we speak of synergy, we mean that the joint effect performed by two actions is greater than the same effect performed by the two actions but independently. It is … Read more

What is an SME?

Pyme is the abbreviation for "small and medium-sized companies". Are those companies whose volume of business and income and workers is usually not very large compared to other companies. The concept of "SME" itself is designated to speak of small and medium-sized enterprises and the plural can be used to speak of all of them. … Read more

What is the Snob Effect?

Microeconomics describes a phenomenon known as the “snob effect,” which occurs when the demand for a particular good by persons with high income is contrarily related to the demand of that good by persons with low incomes. The snob effect creates an atypical slope on the demand curve of normal goods. This effect causes both … Read more