Floor Finance Definition
The area of a stock exchange where active trading occurs.
Floor finance definition. What you don t realize is that like most new car dealers a floor plan was used to finance the cars. Provide keep put a floor under sth theoretically buybacks put a floor under stock prices and raise earnings per share. The lowest level number or amount something is allowed to reach. Dealers can then use their floor plan line of credit to purchase inventory from auctions and other inventory sources.
Much like a credit card a floor plan financing company extends a line of credit to a car dealer. In context of interest rates a level which an interest rate or currency is structured not to go below. Some floors such as the minimum wage are. Retailers use a short term loan to purchase inventory items and the loan is repaid as inventory is sold.
In context of interest rates a level which an interest rate or currency is structured not to go below. Floor planning is a type of inventory financing for large ticket retail items. Also the price at which a stop order is activated when the price drops low enough to activate such an order. Simply it is a way for an auto dealer to use a lender s funds to finance the cars and until each of them is sold the lender holds title to the cars.
Find reach a floor analysts believe the market has found a floor at about 2 560 points. The area of a stock exchange where active trading occurs.