What Is Stabilization Policy? Stabilization policy is a strategy enacted by a government or its central bank that is aimed at maintaining a healthy level of economic growth and minimal price changes. Sustaining a stabilization policy requires monitoring the business cycle and adjusting fiscal policy and monetary policy as needed to control abrupt changes in
What Is a Stabilizing Bid? A stabilizing bid is a purchase of stock by underwriters to stabilize or support the secondary market price of a security immediately following an initial public offering (IPO). After an IPO, the price of the newly issued shares may falter or be shaky in trading. Key Takeaways A stabilizing bid
What Are Stablecoins? Stablecoins are cryptocurrencies whose value is pegged, or tied, to that of another currency, commodity, or financial instrument. Stablecoins aim to provide an alternative to the high volatility of the most popular cryptocurrencies, including Bitcoin (BTC), which has made crypto investments less suitable for common transactions. Key Takeaways Stablecoins are cryptocurrencies that
What Is a Stable Value Fund? A stable value fund is a portfolio of bonds that are insured to protect the investor against a decline in yield or a loss of capital. The owner of a stable value fund will continue to receive the agreed-upon interest payments regardless of the state of the economy. Stable
What Is a Stafford Loan? Stafford loans are a type of federal, fixed-rate student loan available to college and university undergraduate, graduate, and professional students attending college at least half-time. These loans are also called direct loans and are given out under the William D. Ford Federal Direct Loan Program. They are intended to supplement
What Is a Stag? Stag is a slang term for a short-term speculator—a day trader, for example— who attempts to profit from short-term market movements by quickly moving in and out of positions. Day traders, or stags, typically require access to a lot of liquid capital to fund their positions and make a living. This
What Is Stagflation? Stagflation is an economic cycle characterized by slow growth and a high unemployment rate accompanied by inflation. Economic policymakers find this combination particularly difficult to handle, as attempting to correct one of the factors can exacerbate another. Once thought by economists to be impossible, stagflation has occurred repeatedly in the developed world
What Is the Staggers Act? The Staggers Rail Act of 1980 is a federal law that significantly deregulated the railroad industry in the United States. The act encouraged greater reliance on competition to set rates and allowed railroads to set their own rates based on market forces. The Act was passed to replace the highly-regulated
What Is a Stagger System? A stagger system is a method of electing a company’s board of directors that puts up only part of the board for re-election in any one year, in contrast to the system in which all board members go up for re-election annually. Key Takeaways A stagger system involves dividing a
What Is Stagnation? Stagnation is a prolonged period of little or no growth in an economy often highlighted by periods of high unemployment. A rate of growth of less than 2-3% annually as measured by gross domestic product (GDP) is considered stagnation. Stagnation can occur on a macroeconomic scale or in specific industries or companies.
