Economics

Economics

basics of economics

Contributors in Economics

Economics

A market in second-hand financial instruments. Bonds and shares are first sold in the primary market, for instance, through an initial public offering. After that, their new owners often sell them in ...

Second-best theory

Economy; Economics

As we do not live in a perfect world, how useful are economic theories based on the assumption that we do? Second-best theory, set out in 1956 by Richard Lipsey and Kelvin Lancaster (1924–99), looks ...

Securities

Economy; Economics

Financial contracts, such as bonds, shares or derivatives, that grant the owner a stake in an asset. Such securities account for most of what is traded in the financial markets.

Securitization

Economy; Economics

Turning a future cashflow into tradable, bond-like securities. Creating such asset-backed securities became a lucrative business for financial firms during the 1990s, as they invented new securities ...

Seignorage

Economy; Economics

Traditionally, the profit rulers made from allowing metals to be turned into coins. Now it refers in a loosely defined way to the power of a country whose notes and coins are held by another country ...

Seller's market

Economy; Economics

A market in which the seller seems to have the upper hand and so can charge a higher price than in a.

Seniority

Economy; Economics

The order in which creditors are entitled to be repaid. In the event of a bankruptcy, senior debt must be paid off before junior debt. Because junior debt has a lower chance of being repaid than ...