Opportunity Cost



Next video:
Loading the player...

Every action has a cost, even the ones you don't pursue. Find out how this is calculated.

Related Articles
  1. Investing

    What Moves Stock Prices?

    Even if you don't invest a cent in stocks, you should still understand how the stock market works. Find out why.
  2. Investing

    Calculating The Means

    Learn more about the different ways you can calculate your portfolio's average return.
  3. Personal Finance

    The Role Of Opportunity Cost In Financial Decision Making

    Opportunity cost is an essential, often overlooked aspect of financial decision making.
  4. Forex Education

    Look Smart: Financial Calculations You Can Do In Your Head

    Ditch your financial calculator and use these handy tips for estimating complex financial calculations on the fly.
  5. Retirement

    The 3 Best Social Security Calculators For 2016

    Find out how to analyze your Social Security benefits under different retirement scenarios using multifunctional online Social Security calculators.
  6. Investing Basics

    How to Calculate Required Rate of Return

    Investors use the required rate of return to decide where to put their money, and corporations use it to decide if they should pursue a new project.
  7. Credit & Loans

    Smart Ways to Use a Mortgage Calculator

    When you're buying a home, it's essential to do due diligence about the true costs. Mortgage calculators will show you if you can afford the purchase.
  8. Forex

    The Price To Earnings Ratio Explained

    The price to earnings ratio is one of the most important ratios in investing. Find out how it is calculated, how it can be used and what it tells investors about a particular stock.
  9. Forex

    Return On Assets (ROA)

    Return on assets is one of the basic metrics used to evaluate a company's stock. Find out what it can tell you about a stock and learn how to calculate it here.
  10. Home & Auto

    Avoid The Monthly Payment Trap

    Low monthly payments are easy on the wallet. However, interest and other fees lurk just below the surface.
Hot Definitions
  1. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  2. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  4. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  5. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  6. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
Trading Center