Investor Glossary - MicroeconomicsInsightful stock market charts - Click here

 # 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     
Is the stock market headed lower? The answer may surprise you.
Find out now with the exclusive & highly regarded charts of Chart of the Day.

Microeconomics

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.


               


 Popular Terms : 401a, FICO score, 1031 exchange, option premium, reverse mortgage, balance sheet, quant, stock, deferred revenue, CUSIP, forward PE, asset/equity ratio, Black Friday, minority interest, retained earnings, trailing PE, 10-K, average price per share, annualize, deferred tax




 Rate the microeconomics definition... Receive our free Term of the Day email.
 Your Rating:
 Poor 1 2 3 4 5  Excellent
Simply type in your email address and click submit:
 Comment:   
 


Subscribe   Unsubscribe
Home | Term of the Day | Tell a Friend | Suggest a Term | Edit Subscriber Detail
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2008 Investor Glossary - All rights reserved