EconoTerms S

Securities
Securities are evidence that you own something. Examples are stock certificates and bonds.

Stock
A stock is basically a small piece of a company. When you buy a stock, you own a very small fraction of that company, so you are entitled to a very small fraction of the company's profits. If you buy a stock and a company makes money, you're in good shape. If the company starts having problems, you'll lose money. Buying stocks is an investment, but it's also somewhat like gambling. Any time you buy a stock you're taking a risk. Blue chip stocks are stocks of large, secure companies, so if you invest in them there isn't as much chance of losing money. On the other hand, you might make money faster from more volatile stocks, but you also risk greater losses.

Subsidies
Money payed by the government to a citizen or a business to stimulate the economy (see demand-side economics) or to keep the standard of living high.

Supply side economics
This theory, used by President Ronald Reagan in the 1980s, suggests one way in which a government might control inflation. The government lowers taxes on corporations, meaning that they have more money available for investment. Theoretically, the corporations will invest more, raising production and stimulating the economy in general. Bolstered production lowers prices, and thus combats inflation. Supply-side theory is called "supply-side" because it is designed to increase the supply of goods, not increase demand. Demand side theory would give the public subsidies to increase demand.

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