Examlex
Judges in a common-law system base their decisions on other judges' decisions.
Stock Price
The cost of purchasing a share of a company's stock. The price at which a stock is traded on the market, representing the value investors assign to a company.
MM Model
The Modigliani-Miller theorem, proposing that in a perfect market, the value of a firm is unaffected by how it is financed, whether through debt or equity.
Financial Leverage
The use of borrowed funds with a fixed cost to enhance the potential return on investment.
Bankruptcy Risk
The risk that a company will be unable to meet its financial obligations and thus may have to declare bankruptcy.
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