The January Effect Explained

The month of January has an ambiance of new beginnings. As we enter the New Year, we are full of hope and motivation. While laymen worry about getting themselves summer ready, investors have other things to conceive. The straightforward phenomenon of another tax year beginning from January 1st, has led to the existence of the …

The January Effect Explained Read More »

Walras’s Law Explained

We know that markets are constantly in flux and prices constantly change. The question is will there always be a price vector where all markets for different goods clear? Being that one of the principle focus of economics is understanding the determination of price, if equilibrium does not occur then we have a serious problem …

Walras’s Law Explained Read More »

Gordon Growth Model Explained

Gordon Growth Model is a model to determine the fundamental value of stock based on a future series of dividends that grow at a constant rate. It is based on the future sequence of dividends that mature at a constant rate, provided that the dividend per share is payable in a year, the assumption of …

Gordon Growth Model Explained Read More »