Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Ma and Pa Shop

What it is:

A ma and pa shop is a family-owned independent business.

How it works (Example):

For example, franchises and big-box stores such as Target are not a ma and pa shops. The small store down the street, with a local owner, is a ma and pa shop.

Why it Matters:

Ma and pa shops are often single-location stores, often retail stores, that are small or carry specialty items. The advent of big-box stores, which can usually buy and sell at lower prices, has displaced many ma and pa shops, which do not have the same competitive advantages and thus often cannot compete on price with most retailers. Accordingly, they often compete on service.

Related Terms View All
  • Auction Market
    Though most of the trading is done via computer, auction markets can also be operated via...
  • Best Execution
    Let's assume you place an order to buy 100 shares of Company XYZ stock. The current quote...
  • Book-Entry Savings Bond
    Savings bonds are bonds issued by the U.S. government at face values ranging from $50 to...
  • Break-Even Point
    The basic idea behind break-even point is to calculate the point at which revenues begin...
  • Calendar Year
    If Company XYZ starts its fiscal year on January 1 and ends its fiscal year on December...