NISM Series XV : Research Analyst Certification Exam Notes
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Example of Seasonal Trend - GDP contribution from agriculture is likely to be higher around the period of harvest. Therefore, agricultural income will vary quarter over quarter based on the sowing and harvest cycle.
Economic cycle: It refers to the typical process an economy takes to go from expansion to recession and back. The stages in economic life cycle can be broken into four phases - Expansion / Boom, Slowdown, Recession, Recovery
Commodity cycle: Prices of many hard commodities tend to go up and down in cycles. Most often the commodity cycle is driven by economic cycles.
Inventory cycle: Inventory cycles are short term cycles that occur within a commodity cycle. These occur on account of inventory adjustments by producers and customers
General Anti-Avoidance Rules (GAAR) - Entities in an economy adopt various methods to reduce their tax liabilities and the same may be categorized as: "Tax Evasion", "Tax avoidance", "Tax Mitigation" and "Tax Planning". General Anti-Avoidance Rules (GAAR) are framed to minimize tax avoidance. Simple example of tax avoidance is routing of investments by investors through tax havens such as Mauritius.
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