Investor Glossary-microeconomicsInvestor Glossary-microeconomicsInvestor Glossary-microeconomicsInvestor Glossary-microeconomicsInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Microeconomics

The HTML to link to this page
 

Microeconomics is the branch of economics that deals with individuals, companies, and industries. Microeconomics does not deal with performance of the economy as whole, which is the domain of macroeconomics. Microeconomics thus broadly encompasses many specialized bodies of theory, such as auction theory and game theory. Microeconomics also includes a theoretical framework for explaining why individual laborers organize into firms, and the type of firm that is most likely to exist to provide a particular good or service. One of the most broadly applicable areas of microeconomics is the body of production and pricing theory, which rigorously examines supply and demand to provide an understanding of how profit can arise in the delivery of goods and services. Understanding microeconomics is important for developing sophistication as an investor. A basic understanding of microeconomics is relevant to the analysis of most potential investment opportunities. Moreover, both microeconomics and macroeconomics are important foundations for a thorough understanding of modern financial theory.



Rate this microeconomics definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: FICO score, dividends payable, VIX, average price per share, deferred tax, inflation, liquidity ratio, 144a, in escrow, per diem, command economy, annual return, open position, quality assurance, labor relations, stock market close, retained earnings, FTSE, Zero Cost Collar, diluted share, deferred revenue, debt service coverage, irrevocable trust, LIBOR, implied volatility, 401a, risk management, current ratio, 1035 exchange, option premium, EBITDA, Key Rate Duration, minority interest, wholly-owned subsidiary, required rate of return, cancelled check, real GDP, reverse mortgage, ex-dividend date, margin rate, APR, covered put, stock split, ex-dividend, class C shares, limit order, 1031 exchange, phantom income, balance sheet


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use