Economics

Over the counter market

An electronic marketplace where majority of stocks today are traded, It facilitates the buying and selling of financial instruments directly between two parties, without a central exchange, meaning there is no physical trading floor or central location for trading activity. This decentralized platforms where participants trade stocks, bonds, and derivatives directly, bypassing traditional major exchanges like for example, the NYSE (where large-cap companies are publicly traded via an auction system + it is the worlds largest equity marketplace and sets the standard for stability + the only equities exchange in the world with an active trading floor that integrates modern technology with human judgment) OTCM have less regulations, requirements and obligations.

Grant in aid

A transfer of payment from one level of gov to another that counts as revenue and does not involve compensation.

Federal Budget

An anual plan/outline/prediction of anticipated expenditures and revenue for the government.

Trust Fund

Accounts made for specific expenditures.

Crowding-out effect:

High interest rates casued by heavy gov borrowing. This diminishes private borrowers access to financial capital as they compete with the gov.

Incidence of a tax

The final burdne of who pays the tax in a scenario.

Flat tax

Has a constant tax rate and a positive linear relationship between an individuals income and how much they would be taxed after a certain threshold had veen reached. THis method minimizes tax loopholeles “if it did away with most deductions and exemptions” it also reduces the need for tax accountants/preparers and a large portion of the IRS. This would lift the laod of 7billion dollars that americans as a collective spend on organizing their taxes every year.

Industrial union

All workers in the same industry: the development of basic mass-production industries, who were unskilled for trades.

Market theory of wage determination.

What you get is what you work for idea- The supply and demand for a workers skills and services determine the wage or salary they recieve.

Internal revenue services (IRS)

Branch of the treasury department that collects taxes.

Maturity

The states interest on the debt of a bond/the life of a bond/the length of time funds are borrowed for the bond.

Municipal bond

Bonds issued by state and local governments

Efficient market hypothesis

the arguement that stocks are usually priced correctly so it has many investors making bargaining hard.

nonbank financial institutions

A griup of financial intermidaries that channel saving to borrowers EX Pension funds or life insurance.

Modified union shop

A union arrangement where workers do not need a union to be hired but stay until the job ends if they have one.

Pension

A regular payment inteneded to provide income security if theyve reached an age or seuffered a particular injury.

Bond

a formal long term contract that requires repayment of borrowed money and interest on borrowed funds at regular intervals over time.