Quantitative Easing

A non-traditional monetary policy in which a central bank purchases longer-term securities directly from the market.  This has the effect of increasing the money supply as well as working to encourage lending and investment.  When the bank buys these securities, it...

Put

An options contract that gives the owner the ability to sell an underlying security at a pre-determined price within a pre-set time frame (also referred to as the “strike price”).  However, it is not a requirement that the options contract holder buy at...

Pump and Dump

A fraudulent practice of encouraging investors to buy shares in a company in order to artificially inflate the price and sell one’s own shares when the price is high.  Generally, a stock is boosted by a party who has an established position through false,...

Hyperinflation

A term used to denote rapid, excessive, and out-of-control price increases in an economy.  Generally, hyperinflation is differentiated from regular inflation (or the measure of the ricing prices of goods and services) by an extremely rapid rise in prices, typically...

Inflation

A situation marked by rising prices in an economy.  The more technical definition is that inflation is a sustained increase in the general price level in an economy.  This situation translates to an increase in the cost of living in an area as the prices of goods and...