Market Analysis

Brand Development Index (BDI)
The Brand Development Index (BDI) measures the sales performance of a brand within a specific market area compared to its average sales performance across all markets. It highlights the relative strength and potential of a brand in a specific geographic area.
Case-Shiller/S&P Home Price Index
A widely recognized measure of U.S. residential real estate prices, particularly focusing on changes in the price of single-family homes in specific cities.
Change in Supply Distinguished from Change in Quantity Supplied
Understand the critical differences between a change in supply, which relates to factors affecting production, and a change in quantity supplied, which is a response to changes in market price.
Comparables (COMPS)
In real estate, comparables, or COMPS, refer to properties similar to the one being sold or appraised. These properties are used to estimate the value of the subject property based on their similarities in key attributes like location, size, condition, and amenities.
Comparables (COMPS)
Comparables, often abbreviated as COMPS, are an essential element in real estate appraisal and valuation processes. They refer to the comparability of properties with similar characteristics, used primarily to determine the market value of a subject property.
Competitor
A competitor is a manufacturer or seller of a product or service that is sold in the same market as that of another manufacturer or seller. Competitors offer products or services that satisfy similar consumer needs within the same market.
Consumer Research
Consumer research is the process of gathering and analyzing data about consumers to understand their behaviors, preferences, and motivations. This research employs techniques such as focus groups, in-depth interviews, inquiry tests, aided recall interviews, consumer surveys, and attitude testing. The primary goal is to determine factors that influence consumer buying habits and decision-making processes.
Country Screening
Country screening involves using countries as the basic unit of analysis for market evaluation, allowing businesses to identify the most favorable markets for their products or services.
Current Market Value
An estimation of the financial worth of a property if it were to be sold in the present-day market, factoring in current economic conditions, comparable property sales, and general real estate trends.
Dow Jones Industrial Average (DJIA)
The Dow Jones Industrial Average (DJIA) is a widely-recognized stock market index that tracks the performance of 30 major publicly traded companies in the United States.
Fair Market Rent
Fair Market Rent (FMR) is the estimated amount of money a given property would likely command if it were available for lease in the current open market.
Generic Market
A broad group of buyers with approximately the same general needs, who can choose from different sellers offering varying ways to satisfy those needs.
Highest and Best Use (HBU)
The term 'highest and best use' in real estate appraisal refers to the financially, legally, and physically possible use that, at the time of appraisal, is most likely to produce the greatest net return to the land or buildings over a given period.
Long-Term Trend
An observable pattern or direction in data that persists over an extended period. It can significantly impact decision-making and expectation setting in various fields like finance, economics, and business.
Market Analysis
Market Analysis is the comprehensive study designed to define a company's current or potential markets, forecast their directions, and decide how to expand the company's share and exploit any new trends.
Market Area
A market area is the geographic region from which one can expect the primary demand for a specific product or service.
Market Demand
Market demand represents the total demand of all consumers in a market. By summing the quantities demanded by each individual consumer at various prices, it determines the overall demand experienced by the entire market.
Market Report
A comprehensive summary and analysis of the daily activities of a stock exchange or other financial markets, including major stock indices, economic indicators, and notable events influencing the markets.
Market Research
Market research involves exploring the size, characteristics, and potential of a market to identify consumer needs and preferences, usually before developing a new product or service.
Market Screening
Market screening is a method of scanning for desirable markets based on environmental factors that help preclude undesirable markets. It is commonly used in international business strategy to evaluate potential markets effectively.
Market Share
Market share represents the percentage of an industry's sales that is attributed to a particular company or product, indicating its competitiveness within the market.
Marketability Study
A marketability study is an in-depth analysis aimed at determining the likely sales success and marketability of a specific product for a particular client. It involves gathering data on market prices, quantities, and types of products that are currently selling.
Marketing Research
Marketing research involves the systematic gathering, recording, and analyzing of data related to the movement of goods and services from producer to consumer. It covers market analysis, product research, and consumer research.
Moving Average
A statistical calculation used to analyze data points by creating a series of averages of different subsets of the full data set. It is particularly used in finance and business to assess trends over a certain period.
Parity Price
A parity price is a price for a commodity or service, pegged to another price or a composite average of prices from a selected prior period. The parity is typically indexed on a scale where 100 represents parity.
Plus Tick
A 'Plus Tick' indicates a security transaction executed at a price higher than the preceding transaction. This term is often used in trading and market analysis to denote positive price movements.
Price Elasticity
Price elasticity is a measure of the responsiveness of the quantity demanded or supplied of a good to changes in its price. It helps businesses and economists understand the impact of price changes on supply and demand.
Price-Earnings Ratio (P/E Ratio)
An essential metric in fundamental analysis, the Price-Earnings Ratio (P/E Ratio) compares a company's current share price to its per-share earnings, helping investors determine whether a stock is under or overvalued.
Problem Child
In the context of the Boston Consulting Group (BCG) Matrix, a 'Problem Child' represents a business unit, product line, or project that holds a small market share in a high-growth market. These units or products have the potential to grow but require significant investment to gain market share.
Product Development Process
The structured sequence of stages involved in bringing a new product or service concept to market, encompassing market analysis, targeting, development, distribution, and feedback analysis.
Quantitative Research
Quantitative research is a systematic investigation that primarily deals with the quantities of things, involving the measurement of quantity or amount. It's widely applied in various fields such as advertising audience research to develop actual numbers of audience members to accurately measure market situations.
Reading the Tape
Reading the tape involves monitoring changes in stock prices as displayed on the ticker tape in an attempt to gauge immediate stock market conditions of a particular stock, industry group, or the market as a whole.
Research and Development (R&D)
Research and Development (R&D) encompasses the scientific, technological, and marketing efforts involved in creating and bringing new products or services to market.
Research Department
A division within a corporation, brokerage firm, investment company, bank trust department, insurance company, or other institutional investing organization that analyzes products, markets, or securities.
Sampling: A Comprehensive Guide
Sampling is a fundamental aspect of fields like marketing research and sales promotion, facilitating the study and testing of small groups to draw conclusions or stimulate usage in larger populations cost-effectively.
Share of Market
Share of market refers to the percentage of sales a company or product holds within a specific market relative to its competitors. It's a key indicator of competitive positioning and business performance.
Soft Spot
**Soft Spot** refers to a minor weakness in selected stocks or stock groups within a generally strong and advancing market. It indicates areas that are underperforming relative to the broader market trends.
Supply and Demand Curves, Supply and Demand Equilibrium
Graphic representation of supply and demand schedules of a particular market showing the equilibrium point where the supply and demand curves intersect, determining the equilibrium price and quantity.
Uniform Standards of Professional Appraisal Practice (USPAP)
The Uniform Standards of Professional Appraisal Practice (USPAP) outlines the ethical standards and requirements for professional appraisers to ensure competency and transparency in the appraisal process.
Weak Market
A market characterized by a preponderance of sellers over buyers and a general declining trend in prices.
Yield Spread
Yield spread refers to the difference in yields between various issues of securities, often related to issues with different credit qualities. It is a key metric in the bond market, comparing securities that don't share identical maturity and quality.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.