Definition: DAGMAR is a popular advertising strategy brought forward by Russell Colley in a 1961 report presented to the US Association of National Advertisers. This report was titled “Defining Advertising Goals for Measured Advertising Results” (DAGMAR). The theory aims at setting defined and measurable advertising goals or objectives.  Both Colley and Solomon Dutka expanded it in … Read more

Capital Market

Definition: A capital market is a place where medium to long-term securities are traded. These securities include company shares and different forms of the private sector and government debt. Capital markets, among others, aim to boost transactional efficiencies by creating an avenue for holders and seekers of capital to transact. The capital market enables companies, … Read more

Succession Planning

Definition: Succession planning refers to the process or strategy through which an organization identifies and develops candidates competent to take up the leadership and other positions that the present occupants will vacate in the future due to expected or unexpected reasons like retirement, relocation to other companies, incapacitation, death, etc. These potential replacements can be … Read more

ESG Investing

Definition: ESG investing is a form of investment that emphasizes non-financial but environmental, social, and governance factors or metrics (rather than just financial returns) when making investment decisions. It is an ethical perspective towards the company‚Äôs performance and potential. ESG investing goes like this: E – Environmental Factors S – Social Factors G – Governance Factors … Read more

Reorder Point

Definition: The reorder point (ROP) or re-order level is a specified minimum level of inventory or stock of a particular product at which a firm decides to replenish or place a new order for that product. This new order (or reorder quantity) may be in the form of raw materials or finished goods. Hence, a … Read more

Financial Intermediaries

Definition: Financial intermediaries are the individuals or institutions which discursively connects the depositors with the borrowers. It acts as a medium between both by using the depositors’ funds for offering a loan to the borrowers. While these financial intermediaries make income from the interest rate spread. Interest rate spread can be explained as the earnings … Read more

Job Evaluation

Definition: Job evaluation can be defined as the method for estimating the monetary value of any job position. It takes into consideration the various elements which make a particular job worthful, i.e., the skills, experience, expertise, knowledge and training required for accomplishing the assigned tasks. In other words, we can presume job evaluation as a … Read more

Financial Ratio Analysis

Definition: Financial ratio analysis can be explained as a better understanding of the company’s position by correlating multiple elements of its financial statements at a time. These ratios provide an insight to the investors, clients, stakeholders and government authorities. Also, it is an essential tool for business decision making by the directors or the stakeholders. … Read more

Treasury Stock

Definition: Treasury stock can be explained as that chunk of stock which the company buybacks from its shareholders. The company had earlier issued these shares and these were available as the outstanding shares in the market for trading. These stocks are then used for reselling in future or retirement, as per the corporate need. In … Read more

Market Capitalization

Definition: Market capitalization is explained as the company’s market value denoted in dollar amount. It is the valuation of a company’s outstanding or publicly traded shares available for exchange in the open market or stock market. However, it cannot be misinterpreted as the overall corporate value. The market cap determines the risk and returns associated … Read more