MULTIPLIER EFFECT
Expansion or intensifying a nation’s money supply which leads to banks having the capacity to lend significantly. The extent of the multiplier result depends on the percentage of deposits these banks oblige to withhold as reserves. In other words, it is money used to generate more money and computed by dividing the sum of bank deposits by the reserve requisite.
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Netting
Settling mutual obligations at the net value of a contract as opposed to its gross dollar value.
Lemming
An investor who follows the crowd in investing without doing any research on his/her investments. Usually, lemming results to significant losses. T ...
Transaction Deposit
Bank deposit that can be immediately withdrawn, transferred, or otherwise transacted by the depositor. Banks are required to maintain reserves on h ...
Value Fund
Value Fund refers to a stock mutual fund that holds stocks, which are believed to be undervalued in price but are likely to be capable of paying di ...
Market Order
Most common way of carrying orders; an instruction or order from a client, via broker or brokerage service, to immediately purchase or sell an inve ...
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