2023-12-20T09:35:12-08:00[America/Los_Angeles]
What does shrinkage mean?
Shrinkage in finance refers to a reduction in the value of an asset or investment. This can occur due to various factors such as market downturns, economic recessions, or changes in consumer demand. Shrinkage can also refer to a decrease in the amount of a company's inventory, which can occur due to theft, damage, or obsolescence. In the context of financial modeling, shrinkage can refer to the adjustment of historical data to account for the tendency of extreme values to regress towards the mean over time. In general, shrinkage in finance represents a decline in the value or quantity of a financial asset or resource. It is an important consideration for investors, businesses, and financial analysts as they assess the performance and potential risks of their investments or operations.
![What does futures mean?]()
What does futures mean?
Futures in finance refer to a type of financial contract that obligates the buyer to purchase an asset ( such as a commodity or financial instrument ) at a
![What does capital mean?]()
What does capital mean?
In finance , capital refers to the financial resources available to a company for the purpose of carrying out its business activities .
![What does shearing wool mean?]()
What does shearing wool mean?
Shearing wool in finance typically refers to the process of selling off assets or investments to generate immediate cash flow or to reduce risk exposure .