Term of the Day

boom

Period that follows recovery phase in a standard economic cycle. A boom is characterized by an economy working at full or near-full capacity, strongconsumerdemand, low rate of unemployment, and a rising stockmarket, usually accompanied by rapidly increasing consumer prices (inflation).
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Usage Example
Before the Internet boom, most publicly traded companies had to have proven track records and have a history of profitability.
Notable Quotable
"There's no luggage rack on a hearse." -anonymous
Term of the Day

underwriting

  1. The procedure by which an underwriter brings a new security issue to theinvesting public in an offering. In such a case, the underwriter willguaranteea certain price for a certain number of securities to the party that is issuing thesecurity (in exchange for a fee). Thus, the issuer is secure that they will raise a certain minimum from the issue, while the underwriterbears the risk of the...
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Usage Example
Last year the company was charged for misrepresentation in theunderwriting and sale of MBS worth over $3.6 billion.