Steven Nickolas

What Is the Marginal Propensity to Save? Marginal propensity to save (MPS) is used by economists to quantify the relationship between changes in income and changes in savings. It refers to the proportion of an increase in disposable income that […]

Tier 1 capital, under the Basel Accord, measures a bank’s core capital. The Tier 1 capital ratio measures a bank’s financial health, its core capital relative to its total risk-weighted assets (RWA). Under Basel III, banks and financial institutions must maintain

Nike, Inc. (NKE) is a leading textile, apparel, footwear, and accessories company with a market capitalization of $107.4 billion as of March 2025. Phil Knight, Chairman Emeritus, started the company by selling shoes from his car. Nike began as Blue Ribbon

Variable Costs vs. Fixed Costs: An Overview Fixed costs are expenses that remain the same no matter how much a company produces, such as rent, property tax, insurance, and depreciation. Variable costs are any expenses that change based on how

An analyst who gives a stock an overweight rating expects the stock’s price to outperform its industry in the future. The rating may be based on a combination of positive news, good earnings, and raised guidance from the company. Financial

Vanguard does not offer a pure gold fund; However, it does have a fund that invests about one-quarter of its portfolio in precious metals and mining companies, providing indirect exposure to this market: The Vanguard Global Capital Cycles Fund (VGPMX).

What Are Correlation Coefficients? Correlation coefficients are indicators of the strength of the linear relationship between two different variables, x and y. A linear correlation coefficient that is greater than zero indicates a positive relationship. A value that is less

In options trading, the price of an option (known as its premium) is sensitive to the passage of time—known as time decay. As the time to expiration nears, the time value of the option decreases, making an option nearing maturity

What Is Dividend Per Share? Dividend per share (DPS) refers to the total dividend a company pays out over a 12-month period, divided by the total number of outstanding shares. In other words, it is how much of a dividend investors

Derivatives vs. Swaps: An Overview Derivatives are contracts that involve two or more parties. They have a value based on an underlying financial asset. Derivatives are often a means of risk management. International trade originally relied on derivatives to address