Statistical Terms Glossary

See discount.

A market is where buyers and sellers transact business for the exchange of particular goods and services and where the prices for these goods and services tend towards equality. In order for a market to "clear" or function properly, the quantity of goods and services demanded and supplied must be equal at some given price. At any particular point in time, markets can be in "equilibrium" or "disequilibrium" depending on whether or not aggregate supply equals aggregate demand at the prevailing price.

An approach to debt workout whereby the diverse interests and constraints of the banking community are taken into consideration by offering different methods of dealing with debt problems.

An IMF category of countries, covering those countries whose borrowings are made on the capital markets, as opposed to those whose borrowings are made from development institutions (official borrowers).

The total value of all of a firm's outstanding shares, calculated by multiplying the market price per share times the total number of shares outstanding.

Interest rate which attracts equal number of buyers and sellers.

A price for an item which attracts just enough buyers as there are buyers. If prices are lower demand will be too high; if higher demand will be too low.

See Concentration

The starting point in any type of competition analysis is the definition of the "relevant" market. There are two fundamental dimensions of market definition:
(i) the product market, that is, which products to group together; and
(ii) the geographic market, that is, which geographic areas to group together.
Market definition takes into account both the demand and supply considerations. On the demand side, products must be substitutable from the buyer’s point of view. On the supply side, sellers must be included who produce or could easily switch production to the relevant product or close substitutes.

Market depth is a dimension of market liquidity and it refers to the ability of a market to handle large trade volumes without a significant impact on prices.

Countries that have access to financial markets.

Market establishments produce mostly goods and services for sale at prices which are economically significant.

See Exchange rates

Market failure is a general term describing situations in which market outcomes are not Pareto efficient. Market failures provide a rationale for government intervention.

The inability of the market to function in its normal manner.

In an economic system where the voting stock (shares) of companies are publicly bought and sold through the mechanism of a stock exchange, the term "market for corporate control" refers to the process by which ownership and control of companies is transferred from one group of investors and managers to another. The share prices of companies publicly listed on the stock exchange are often viewed as a "barometer" indicating the extent to which management is efficiently operating the corporation and maximizing shareholder wealth.

Removal of barriers between two markets for the same product, so that prices on the two markets become more closely linked. Trade liberalization contributes to international market integration.

Acting on the market (i.e. buying and/or selling of securities) on behalf of someone else.

A bank or a broker that is prepared to make a two-way price (to buy or sell) for a currency or a security on a continuous basis, in the same way as a stock jobber in the U.K. market. AMM is the term used in the MATIF.

Maintain firm bid and offer prices for a security or currency on a continuous basis.

Market non-profit institutions serving businesses are created by associations of the businesses whose interests they are designed to promote and are usually financed by contributions or subscriptions from the group of businesses concerned; the subscription are treated not as transfers but as payments for services rendered.

Order to buy or sell a security at the best available price.

Market output consists of output that is disposed of on the market or intended to be disposed of on the market.

Market output includes:

a) products sold at economically significant prices;
b) products bartered;
c) products used for payments in kind

Market output is output that is sold at prices that are economically significant or otherwise disposed of on the market, or intended for sale or disposal on the market.

Individuals and corporations active in the market.

Market power refers to the ability of a firm (or group of firms) to raise and maintain price above the level that would prevail under competition is referred to as market or monopoly power. The exercise of market power leads to reduced output and loss of economic welfare.

Market price equivalents are proxies, or substitute measures, for market prices in those cases for which no actual market prices have been set; a customary approach is to construct such prices by analogy with known market prices established under conditions that are considered essentially the same

Market prices for transactions are the amounts of money willing buyers pay to acquire something from willing sellers