FEDERAL OPEN MARKET
COMMITTEE-FOMC: is the branch of the Federal Reserve Board that determines the
direction of monetary policy. The FOMC is composed of the board of governors,
which has seven members, and five reserve bank presidents. The president of the
Federal Reserve Bank of New York serves continuously, while the presidents of
the other reserve banks rotate their service of one-year terms.
MARKET-MAKER SPREAD is the difference between
the bid and ask price posted by the market maker for a security.
FEDERAL FUNDS RATE is the interest rate at
which a depository institution lends funds maintained at the Federal Reserve to
another depository institution overnight. It is generally only applicable to
the most creditworthy institutions when they borrow and lend overnight funds to
each other.
DEALER is a person or firm who
buys and sells securities for their own account through a broker or otherwise.
FLOOR BROKER (FB) is an independent member
of an exchange who is authorized to execute trades on behalf of clients.
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