Stabilization (redirected from stabilizations)

Stabilization

The action undertakes a country when it buys and sells its own currency to protect its exchange value.
Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders follow a plus tick and buy orders a tick.
Actions a managing underwriter undertake so that the market price does not fall below the public offering price during the offering period

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Price Stabilization

The ultimate goal of the steps a central bank takes to reduce inflation. That is, when prices are rising rapidly, the central bank may reduce the amount of money in circulation and/or raise interest rates to bring down the rate at which prices are rising. Price stabilization does not bring prices down to their former levels, but it does reduce the rate at which they rise to a more sustainable level. While this is popular in theory, it is important to note that Federal Reserve chairman Paul Volcker caused a recession in the early 1980s when he raised interest rates to 18% to achieve price stabilization.