(FINANCE) a person or entity that lends money to someone else by creating securities and selling them. In commercial milieux, this is investment banking, and the most famous investment bank is Goldman Sachs. Another major investment bank is Morgan Stanley.
Most major countries have a ministry of the treasury, or ministry of finance, that issues bonds for the government and is responsible for selling them to raise money for government borrowing. These are treasury securities.
Most major countries have a ministry of the treasury, or ministry of finance, that issues bonds for the government and is responsible for selling them to raise money for government borrowing. These are treasury securities.
by Abu Yahya May 05, 2010
(MATHEMATICS) a function of numbers that are the root of a base. For example, log(base 2) means a function of numbers that are the numbered roots of 2. The log(base 2) of 2 is 1, meaning 2 raised to the power of 1 is 2 (2^1 = 2); log(2) of 4 is 2, and so on.
The idea here is that any number can be expressed as 2 raised to some power; better still, if you do math with the logs of a number rather than the numbers themselves, you can find useful patterns. For example, if you are graphing population growth, and you just plot the raw number of people over time, you aren't going to notice anything in particular. If you plot the log of population, you can see that, while population is growing, the rate of growth is falling.
Usually, if you are doing statistical research with numbers that always have to be positive (like population, death tolls from diseases, etc.), you need to use logarithms for the numerical values in order to represent a confidence interval.
Logs usually have a base of e or 10. Logs with a base of e are called natural logs.
The idea here is that any number can be expressed as 2 raised to some power; better still, if you do math with the logs of a number rather than the numbers themselves, you can find useful patterns. For example, if you are graphing population growth, and you just plot the raw number of people over time, you aren't going to notice anything in particular. If you plot the log of population, you can see that, while population is growing, the rate of growth is falling.
Usually, if you are doing statistical research with numbers that always have to be positive (like population, death tolls from diseases, etc.), you need to use logarithms for the numerical values in order to represent a confidence interval.
Logs usually have a base of e or 10. Logs with a base of e are called natural logs.
by Abu Yahya April 23, 2010
Bill passed into law May 1908. Created a scheme for preventing banking liquidity crises (such as the Crisis of 1907); also created a commission for massive banking reform. The Aldrich-Vreeland Commission deliberated for three years before sending their plan to Congress.
In 1912, Republicans lost control of Congress and the White House. The Aldrich-Vreeland was modified by Sen. Carter Glass (D-VA), then submitted it to Congress and passed December 1913. This created the Federal Reserve System.
Sen. Glass argued that the Federal Reserve Act of 1913 was totally different from the plan developed by the Republicans. Anna Schwartz and Milton Friedman, in *A Monetary History of the United States, 1867-1960* (1963) explained it was pretty much the same. In any event, the Aldrich-Vreeland Act was one of the most important pieces of legislation ever passed in response to an economic crisis.
In 1912, Republicans lost control of Congress and the White House. The Aldrich-Vreeland was modified by Sen. Carter Glass (D-VA), then submitted it to Congress and passed December 1913. This created the Federal Reserve System.
Sen. Glass argued that the Federal Reserve Act of 1913 was totally different from the plan developed by the Republicans. Anna Schwartz and Milton Friedman, in *A Monetary History of the United States, 1867-1960* (1963) explained it was pretty much the same. In any event, the Aldrich-Vreeland Act was one of the most important pieces of legislation ever passed in response to an economic crisis.
MARC: Wow! Glenn Beck says that Woodrow Wilson was actually a crypto-communist.
BILL: Sorry, that's silly.
MARC: Well, didn't he create the Federal Reserve Bank? That's socialistic, isn't it.
BILL: Uh, it was designed during the Administration of William Howard Taft, Marc. Ever heard of the Aldrich–Vreeland Act?
MARC: President Taft? I had no idea he was a Communist too!
BILL: Sorry, that's silly.
MARC: Well, didn't he create the Federal Reserve Bank? That's socialistic, isn't it.
BILL: Uh, it was designed during the Administration of William Howard Taft, Marc. Ever heard of the Aldrich–Vreeland Act?
MARC: President Taft? I had no idea he was a Communist too!
by Abu Yahya April 05, 2010
(FINANCE) used to refer to an option that has no intrinsic value, given the prevailing spot price. The two obvious examples are the call option and the put option.
*If the strike price of a call option is greater than the current price (or "spot price") of the underlying stock, then there is no point in exercising the option.
*If the strike price of a put option is less than the spot price, then there is no point in exercising the option/
Please note that "having no intrinsic value" IS NOT THE SAME THING as "worthless." An option that is out of the money is not worthless, unless it is about to expire. Assuming there is a lot of time left on the option before it expires, there remains the possibility the spot price of the underlying item could move in a favorable direction, and make the option "in the money."
*If the strike price of a call option is greater than the current price (or "spot price") of the underlying stock, then there is no point in exercising the option.
*If the strike price of a put option is less than the spot price, then there is no point in exercising the option/
Please note that "having no intrinsic value" IS NOT THE SAME THING as "worthless." An option that is out of the money is not worthless, unless it is about to expire. Assuming there is a lot of time left on the option before it expires, there remains the possibility the spot price of the underlying item could move in a favorable direction, and make the option "in the money."
Buying a call option that is out of the money is a long position; buying a put option that is out of the money is a short position.
by Abu Yahya April 15, 2010
A choice between an alternative that is awful and one that is unacceptable. Usually defined as "no choice at all," since one of the choices is likely to be totally unacceptable (death, starvation, death of a loved one held hostage, insolvency).
A person whose relatives have been taken hostage is faced with the Hobson's choice of rewarding someone who attacked his family, and having his relatives killed because of decisions he made.
by Abu Yahya May 05, 2010
Money that (a) derives its value entirely from the mandate of the government, and (b) cannot be freely traded. Fiat money is not the same thing as floating currency, because if a floating currency is intrinsically worthless then its lack of worth will be reflected in the forex markets. Fiat money, on the other hand, does not require a disciplined monetary of fiscal policy on the part of the issuing authorities; exchange rates are fixed by decree, which means the state also controls supplies of hard (foreign) currency.
by abu yahya August 04, 2008