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Posts tagged as “Open Market”

Transfer Pricing

When one division sells a good or service to another division within the same company, a transfer price must be established. This is critical because it affects the profitability of both units and, therefore, managerial bonuses.

Allocating Corporate Capital Fairly

The core principle of "fairness" in this context is generally tied to economic value creation, which means prioritizing investments that promise the highest risk-adjusted returns and align with the company's long-term strategy.

Relationship Of Intrinsic Value to Market Price

The relationship between intrinsic value to market price is a cornerstone of value investing and fundamental analysis. They represent two different ways of looking at an asset's worth, and the difference between them can present investment opportunities.

Cospecialized Assets

Cospecialized assets are a critical concept in the economics of innovation and strategy, referring to a situation where an innovation and the complementary assets needed to commercialize it are mutually dependent.

Who Are Underwriters?

In the financial world, an underwriter is a crucial party, usually a financial institution like an investment bank, that evaluates and assumes the financial risk of another party for a fee.