Sunday, February 25, 2007
What is GDP or Gross Domestic Product?
The Gross Domestic Product of a country is the value of all goods and services produced in a country in one year.
GDP can be calculated as follows: add up all of a country's incomes (say wages, interest, profits etc) and its exports. Subtract from this total the country's total imports.
Labels: economy
What is a thousand trillion called?
A thousand trillion is called a quadrillion. It is written as one followed by 15 zeroes = 1,000,000,000,000,000.
A quadrillion is also equal to a million billion (1000000*1000000000) .
A quadrillion is also equal to a million billion (1000000*1000000000) .
Labels: numbers
How much is a trillion?
A trillion is what you get when you multiply 1000 four times by itself = 1000*1000*1000*1000 . A trillion is written as 1 followed by 12 zeros = 1,000,000,000,000.
A trillion is also equal to 1000 billion ( 1000*1000000000 ). It is also equal to a million million ( 1000000 * 1000000 )
A trillion is also equal to 1000 billion ( 1000*1000000000 ). It is also equal to a million million ( 1000000 * 1000000 )
Labels: numbers
What is a computer motherboard?
A computer motherboard has nothing to do with your or my mother. The main board inside a computer that contains all the electronic circuits required for information processing, as well as for the computers keyboards and monitors is called the motherboard. In addition to existing circuits, a computer motherboard has the provision to accept additional circuitry should such a need arise.
Labels: computers
Saturday, February 24, 2007
What are commodities?
Commodities have slightly different meanings in different contexts.
In everyday parlance, commodities are goods that are sold solely on the basis of price (and not based on brand name, for instance). Examples of commodities in this sense are food & grains, metals such as gold, silver etc.
In the world of investing, commodities are those items that can be traded on the basis of price. In this context, commodities could mean more than just physical commodities - they can also include whatever can be traded on the basis of price.
In everyday parlance, commodities are goods that are sold solely on the basis of price (and not based on brand name, for instance). Examples of commodities in this sense are food & grains, metals such as gold, silver etc.
In the world of investing, commodities are those items that can be traded on the basis of price. In this context, commodities could mean more than just physical commodities - they can also include whatever can be traded on the basis of price.
What is Shorting a Stock or Going Short?
The stock markets are funny!
You would have thought that you can sell only what you have, but in the case of stock markets you can sell something you do not have. Three questions arise: Why will someone want to sell stocks they do not own, how is this possible, and what is the catch?
Why will someone want to sell stocks they do not own? - Well, let's say you are convinced that the price of a stock (that you do not own) is going to decrease significantly over the next few months. You cannot make money with this information if you buy stocks, right? But you can make money with this information if you sell some of those stocks now at a higher price and buy them later at a lower price.
How can I sell stocks that I do not own? - This is possible because you can borrow stocks from some one else (usually a stock brokerage house) and sell them. Makes sense?
But what is the catch? Ah, this is an important point. The catch is, you need to return the stocks you borrowed to the lender (say a stock brokerage house) at some point in time. In order to return these stocks, you will need to buy them from the market. If during the period between your selling and purchase, the price had decreased considerably, then you make a profit. If on the other hand, your information was wrong and the price of the stock increases during this period, you make a loss.
You would have thought that you can sell only what you have, but in the case of stock markets you can sell something you do not have. Three questions arise: Why will someone want to sell stocks they do not own, how is this possible, and what is the catch?
Why will someone want to sell stocks they do not own? - Well, let's say you are convinced that the price of a stock (that you do not own) is going to decrease significantly over the next few months. You cannot make money with this information if you buy stocks, right? But you can make money with this information if you sell some of those stocks now at a higher price and buy them later at a lower price.
How can I sell stocks that I do not own? - This is possible because you can borrow stocks from some one else (usually a stock brokerage house) and sell them. Makes sense?
But what is the catch? Ah, this is an important point. The catch is, you need to return the stocks you borrowed to the lender (say a stock brokerage house) at some point in time. In order to return these stocks, you will need to buy them from the market. If during the period between your selling and purchase, the price had decreased considerably, then you make a profit. If on the other hand, your information was wrong and the price of the stock increases during this period, you make a loss.
What is a mainframe computer?
A mainframe computer is a large computer that is powerful enough to work much faster than ordinary desktop computers / PCs.
The computer age started in the mid 1950s with the mainframe computers before graduating to mini-computers and then to the personal computers.
Many aspects of mainframe computers are quite different from those used in our PCs. Their operating systems, databases and storage & computing mechanims are quite different from those of personal computers.
IBM is one of the prominent companies that manufactures mainframes.
The computer age started in the mid 1950s with the mainframe computers before graduating to mini-computers and then to the personal computers.
Many aspects of mainframe computers are quite different from those used in our PCs. Their operating systems, databases and storage & computing mechanims are quite different from those of personal computers.
IBM is one of the prominent companies that manufactures mainframes.
Labels: computers
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