Identify/define and Explain the Significance of the Following: Double-Entry Bookkeeping

question 41

Essay

Identify/define and explain the significance of the following: double-entry bookkeeping.

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Definitions:

Put/call Ratio

A metric indicating the trading volume of put options relative to call options, used to gauge market sentiment.

Outstanding Put Options

Refer to the total number of put options that are currently open and have not yet been exercised or expired.

Outstanding Call Options

Call options that have been sold but not yet exercised, representing potential claims on the underlying security.

Efficient-market Hypothesis

The theory that all known information is already reflected in stock prices, making it impossible to consistently achieve higher returns than the overall market.