Forex Trading Course

Category: glossary , Asked by: Logan Z. From Monaco

A: When monetary policy cannot entice consumers into spending more money or investing in an economy, even if monetary policy is loosened to to put more money into peoples' hands. This term is often attributed to noted economist John Maynard Keyenes. If the core demand doesn't exist to induce people to part with their money, it can't be forced through monetary policy. Trying to do so is like trying to "push on a string". Such a situation occurred during the Great Depression in the 1930s and in Japan during the late 1990s when interest rates were about 1%. This situation is sometimes referred to as a "liquidity trap" and explains why central bankers do not attempt to lower rates to levels approaching zero. To lower rates to this level would eliminate monetary policy's power to influence economic growth and consumption.

Category: glossary , Asked by: N. Y. From Palmdale, United States

A: the "cum rights " is When a company announces a rights issue, existing shareholders get the right to buy new shares, usually at a discount to the current share price. That right attaches to the existing shares and it has a value. In the period after the announcement of an imp

Category: glossary , Asked by: W. Stout from Buffalo, United States

A: 1. An illegal practice in which an underwriting syndicate member withholds part of a new securities issue and later sells it at a higher price. 2. The illegal activity of buying a stock and selling it before paying for the purchase. Due to the unfair advantage both of these practices give to those able to exploit freeriding opportunities, freeriding is illegal and prohibited by the Securities & Exchange Commission and the National Association of Securities Dealers.