Floor

The lowest acceptable limit as restricted by controlling parties. Floors can be established for a number of factors, including prices, wages, interest rates, underwriting standards and bonds. Some types of floors, such as underwriting floors, act as mere guidelines while others,such as price and wage floors, are regulatory constraints that restrict the natural behavior of free markets.

Lenders use an underwriting floor to establish minimum guidelines for borrower creditworthiness and to determine the size of loan the borrower is qualified for.

A price floor is the lowest price that a government allows a good to be sold for. For example, the government might decide to establish a price floor for alcoholic beverages with the goal of lowering alcohol consumption for health reasons. In the absence of a price floor, the free market equilibrium price might be lower.

Minimum wage is an example of a wage floor. This floor is a minimum price per hour that a worker must be paid, as determined by federal and state governments. An unintended consequence may be to increase unemployment, as low-skilled workers are priced out of the labor market and companies cannot afford to hire as many employees.


Investment dictionary. . 2012.

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  • Floor — (fl[=o]r), n. [AS. fl[=o]r; akin to D. vloer, G. flur field, floor, entrance hall, Icel. fl[=o]r floor of a cow stall, cf. Ir. & Gael. lar floor, ground, earth, W. llawr, perh. akin to L. planus level. Cf. {Plain} smooth.] 1. The bottom or lower… …   The Collaborative International Dictionary of English

  • floor — floor·age; floor; floor·er; floor·ing; floor·less; floor·man; floor·ward; sub·floor; sea·floor; floor·wards; …   English syllables

  • floor — floor, storey In Britain the storey at ground level is called the ground floor. A single storey house is one with a ground floor only; a two storey house has a ground floor with a first floor above it; a three storey house has a second floor… …   Modern English usage

  • floor — [flôr] n. [ME flor < OE, akin to Ger flur, a plain < IE base * plā , broad, flat > PLAIN1] 1. the inside bottom surface of a room, hall, etc., on which one stands or walks 2. the bottom surface of anything [the ocean floor] 3. the… …   English World dictionary

  • Floor — Floor, v. t. [imp. & p. p. {Floored}; p. pr. & vb. n. {Flooring}.] 1. To cover with a floor; to furnish with a floor; as, to floor a house with pine boards. [1913 Webster] 2. To strike down or lay level with the floor; to knock down; hence, to… …   The Collaborative International Dictionary of English

  • floor — n 1 a: a main level space (as in a stock exchange or legislative chamber) distinguished from a platform or gallery b: members of an assembly took questions from the floor c: the right to address an assembly the senator from Utah has the floor 2 …   Law dictionary

  • Floor — 〈[flɔ:(r)] m. 6; Wirtsch.〉 1. an Warenbörsen häufig vorhandener, separater Raum, in dem Handelsgeschäfte getätigt werden können 2. freiwillig vereinbarte Mindestrendite bei Geldanlagen mit variablem Zins [<engl. floor, eigtl. „Boden, Parkett“] …   Universal-Lexikon

  • floor — ► NOUN 1) the lower surface of a room. 2) a storey of a building. 3) the bottom of the sea, a cave, etc. 4) a minimum level of prices or wages. 5) (the floor) the part of a legislative assembly in which members sit and from which they speak. 6) ( …   English terms dictionary

  • Floor 13 — ist ein 1991 von Virgin Interactive veröffentlichtes Computerspiel für DOS Betriebssysteme. Das Spiel selbst ist im Vereinigten Königreich angesiedelt und versetzt den Spieler in die Rolle des Chefs einer fiktiven Regierungsbehörde, die als… …   Deutsch Wikipedia

  • Floor — 〈[flɔ:(r)] m.; Gen.: s, Pl.: s; Wirtsch.〉 1. (an Warenbörsen) häufig vorhandener, separater Raum, in dem Handelsgeschäfte getätigt werden können 2. freiwillig vereinbarte Mindestrendite bei Geldanlagen mit variablem Zins [Etym.: <engl. floor,… …   Lexikalische Deutsches Wörterbuch

  • Floor — [flɔ:] der; s, s <aus engl. floor »Fußboden; Stockwerk; Sitzungssaal«, dies zu mhd. vluor »Boden(fläche), Saatfeld«>: 1. (an Produktenbörsen) abgegrenzter Raum, in dem sich die Makler zur Abwicklung von Termingeschäften zusammenfinden. 2.… …   Das große Fremdwörterbuch

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