James d. Gwartney

stock exchange: see stock market
(?)
. 
↩ 
stock market: The collection of markets and exchanges where the regular activities of buying,
selling, and issuance of shares of publicly held companies take place. 
↩ 
stockbroker: A person or company that buys and sells stocks and shares for other people. 
↩ 
stockholder: see shareholder
(?)
. 
↩ 
subprime loan: A loan made to a borrower with blemished credit or who provides only
limited documentation of his or her income, employment history, and other indicators of credit
worthiness. The interest rates on subprime loans are generally higher than for loans to prime
credit customers. An important institution that helps define what interest rate is charged to
borrowers is a “credit rating” provided by an independent institution that tracks individuals’
past borrowing behavior. 
↩ 
subsidiarity: An organizing principle that matters ought to be handled by the smallest, lowest,
or least centralized competent authority. Political decisions should be taken at a local level if
possible, rather than by a central authority. 
↩ 
subsidy: A government payment or tax credit provided to either the producers or consumers of
certain goods. The payments to producers of ethanol, which sum to about $1.50 per gallon,
provide an example. 
↩ 

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substitutes: Products that serve similar purposes. An increase in the price of one will cause an
increase in the demand for the other, and a decline in the price of one will cause a decline in
the demand for the other (for example, hamburgers and tacos, butter and margarine, Chevrolets
and Fords). 
↩ 
surplus (in a market): A condition in which the amount of a good offered for sale by
producers is greater than the amount that buyers will purchase because the government has set
the price above the equilibrium. 
↩