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Price support |
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Price supportGovernment action to increase the price of a product, usually by buying it. May be associated with a price floor.Price supportGovernment intervention to set an artificially high price through the use of a price floor designed to aid producers.Price support Similar MatchesAggregate measurement of supportAggregate measurement of supportThe measurement of subsidy to agriculture used by the WTO as the basis for commitments to reduce the subsidization of agricultural products. It includes the value of price supports and direct subsidies to specific products, as well as payments that are not product specific. Self supporting debtSelf supporting debtBonds sold to finance a project that will produce enough revenue through tolls or other charges to retire the debt . See: revenue bond. Support levelSupport levelA price level below which it is supposedly difficult for a security or market to fall. That is, the price level at which a security tends to stop falling because there is more demand than supply; can be identified on a technical basis by seeing where the stock has bottomed out in the past. Producer support estimateProducer support estimateIntroduced by the OECD to quantify support in agriculture, it measures "transfers from consumers and taxpayers to agricultural producers as a result of measures [of] support," expressed as percentage of gross farm receipts. Also called producer subsidy equivalent. See also CSE. Support levelSupport levelThe price level at which technical analysts note persistent buying of a share or commodity.If the share price of XYZ company is plotted on a chart, and the chart shows that over the period the price always seems to bounce back whenever it falls to, say, 320p, technical analysts would see that price as a 'support level'.The significance of the support level is that if the share price does break below it, that indicates a change of sentiment in the market towards the share, and may indicate the arrival of a new trading range. If the technical analyst is right in making this observation, he can buy or sell accordingly and make a profit. Further SuggestionsLateral SupportConsumer support estimate Domestic support Aggregate measure of support Support |
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