floor (redirected from flooring)

Floor

The lowest acceptable limit as restricted by controlling parties.

Notes:

A floor, or bottom, is the minimum allowable limit. An example of a floor occurs in underwriting. The issuing corporation will declare a minimum acceptable amount at which the investment bank can purchase the securities. This way the corporation ensures sufficient capital acquisition.

See also: Bottom, Ceiling, Investment Bank, Underwriting

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Floor

The area of a stock exchange where active trading occurs. Also the price at which a stop order is activated (when the price drops low enough to activate such an order). In context of interest rates, a level which an interest rate or currency is structured not to go below.

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floor

The area of an organized exchange where securities are traded. Customer orders are transferred to the floor, where they are executed by members of the exchange.