Remove 2008 Remove Financial Market Remove Profitability
article thumbnail

The Fundamentals of a Free Market Economy

Peak Frameworks

Profit Motive The pursuit of profit drives businesses to operate efficiently and innovate. Google's development of its highly profitable AdSense program showcases this principle. Limited Government Intervention Government intervention in a free market is minimized, letting market forces guide the economy.

article thumbnail

What is a Business Cycle? Expansion, Peak, Contraction, and Trough

Peak Frameworks

During this period, businesses often expand their operations, capital expenditure increases, and markets tend to perform strongly. Such a conducive environment frequently spurs significant investment opportunities and robust financial activity. This phase typically involves increased market volatility and heightened investment risk.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

What Is Gross Domestic Product (GDP)?

Peak Frameworks

For example, during the economic recovery following the 2008 financial crisis, the U.S. Profits: Corporate profits. It influences investment decisions, informs economic forecasting, and impacts financial markets. GDP's steady growth signaled an improving economy. Rents: Income from property.

article thumbnail

Derivatives: Types of Derivatives, Concepts, and Risks

Peak Frameworks

During the 2008 financial crisis , put options (which give the holder the right to sell at a specific price) on mortgage-backed securities and major stock indexes increased in value dramatically as the market plummeted. Speculation, on the other hand, involves taking on risks in the hope of making a profit.

article thumbnail

What is Natural Law? (Principles, Definition, Applications in Business)

Peak Frameworks

Rooted in philosophy, its significance in guiding ethical and rational financial decisions is undeniable. For example, the 2008 financial crisis can be examined through the lens of Natural Law. Goldman Sachs's reputation was tarnished after the SEC lawsuit in 2010 related to the marketing of a subprime mortgage product.

article thumbnail

What Is the Gig Economy?

Peak Frameworks

The aftermath of the 2008 financial crisis left many people unemployed or underemployed, leading to the search for alternative income sources. Similarly, venture capitalists have shown a growing interest in gig economy startups, reflecting the sector's potential profitability. Economic trends have also played a role.

article thumbnail

Interest Rate Swap | Examples | Uses | Swap Curve

Wall Street Mojo

In the process of interest rate swap valuation , a fixed rate is exchanged for floating rate by taking advantage of the rate fluctuations in the financial market in order to obtain lower rates. It proves to be a prerequisite for analyzing the business’s strength, profitability, & scope for betterment. fixed interest rate.