floor


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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. In context of OTC interest rate options, a series of interest rate put options, where the buyer of the floor guarantees a minimum interest income

Floor

1. See: Exchange floor.

2. The lowest price or some other limit that can occur. For example, in an adjustable-rate mortgage, the lender will often specify a floor for the interest rate, which means that even though the interest rate on the mortgage changes from time to time, it will never drop below the specified floor. These exist to protect one or both parties to a contract or investment. See also: Ceiling, Collar.

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.

floor

Other than the obvious, refers to the bottom of something. Variable-rate mortgages may provide a minimum interest rate,called a floor,even if the rate would otherwise be less if the index dropped. Percentage leases with rent partially based on gross revenues might have a minimal amount,or floor payment.

References in classic literature ?
Beside the opening in the floor, just behind the altar, through which he had entered the court from the subterranean chamber below, the Belgian discovered several doors leading from the enclosure upon the level of the floor.
They blocked the way; they seized him, and though he fell, groveling upon his knees before them, begging for his life, they bound him and hurled him to the floor of the inner temple.
She was standing with her back against a column which rose from the center of the apartment from floor to ceiling--a hollow column about forty inches in diameter in which he could see an opening some thirty inches across.
From the throat of the Wieroo issued that dismal wail that Bradley had heard so often in the past--it was like a scream of pain smothered to a groan--and then the thing leaped upon the girl, its face working in hideous grimaces as it clawed and beat at her to force her to the floor.
How long he sat thus he did not know; but finally he was aroused by a noise coming from the floor below.
He reported the fact to Herr Skopf, the proprietor, who at once made his way to the second floor where he, too, pounded vigorously upon the door.
Presently he resumed pacing to and fro across the floor, and it was fully fifteen minutes before he again noticed the prisoner, and then it was to issue a curt order to her guards, who immediately conducted her from the apartment.
The guards now led the girl through a series of corridors and apartments to a narrow stone stairway which led to the floor above, finally stopping before a small door where stood a naked Negro armed with a spear.
The morbid fascination which seems to be exercised by all horrible sights, drew him back again to the ghastly object on the floor.
Tara sat up and looked about and at the same instant a huge eunuch leaped to his feet from where he had been lying on the floor close by that side of the dais farthest from Gahan.
he shouted his loudest and most belligerent, as he ruffled like a bravo at the gutter-cat beneath him, so that he sent her crouching, with startlement, lower to the floor, her ears wilting rigidly flat and down, her tail lashing, her head turning about the room so that her eyes might penetrate its obscurest corners in quest of the human whose voice had so cried out.
Blood stood upon bruises on his knotty fore-arms where they had scraped against the floor or the walls in the scuffle.