Lobby

AAA

DEFINITION of 'Lobby'

A group of like-minded people banded together to influence an authoritative body, or the act of trying to exert that influence, (i.e., lobbying). A lobby is typically formed to influence government officials to act in a way beneficial to the lobby's best interests - either through favorable legislation or by blocking unfavorable measures. Lobby groups consist of individuals, groups and companies and can be found across the globe. Because of the negative effect lobbies can have by essentially circumventing the democratic process, some countries have seen fit to regulate their activities.

INVESTOPEDIA EXPLAINS 'Lobby'

Although lobbies have received a bad name, they have also been instrumental in protecting or advancing human rights. In the 1950s, for example, the National Association for the Advancement of Colored People (NAACP) filed lawsuits in state and federal courts challenging existing segregation laws. As a result of these suits, the Supreme Court eventually declared such laws unconstitutional.

RELATED TERMS
  1. Corporate Action

    Any event that brings material change to a company and affects ...
  2. Formal Tax Legislation

    The process by which a proposed tax rule or tax change may become ...
  3. Industry Group

    A classification method for individual stocks or companies, usually ...
  4. Industry

    A classification that refers to a group of companies that are ...
  5. Legislative Overkill

    A law enacted to stop or prevent the abuse of a loophole, but ...
  6. Authorization Only

    A type of sale transaction that creates a pending transaction ...
RELATED FAQS
  1. How does beta measure a stock's market risk?

    Beta is a statistical measure of the volatility of a stock versus the overall market. It's generally used as both a measure ... Read Full Answer >>
  2. How does the risk of investing in the electronics sector compare to the broader market?

    The risk of investing in the electronics sector closely approximates the risk of investing in the broader market. The electronics ... Read Full Answer >>
  3. What is the difference between moral hazard and adverse selection?

    Adverse selection occurs when there's a lack of symmetric information prior to a deal between a buyer and a seller, whereas ... Read Full Answer >>
  4. How much of a diversified portfolio should be invested in the electronics sector?

    The electronics sector tracks closely with the broader market, making it a cyclical sector with average volatility. Electronics ... Read Full Answer >>
  5. What are the primary sources of market risk?

    Market risk is the risk of loss due to the factors that affect an entire market or asset class. Market risk is also known ... Read Full Answer >>
  6. In what types of economies are regressive taxes common?

    Regressive taxation systems are more likely to be found in developing countries or emerging market economies than in the ... Read Full Answer >>
Related Articles
  1. Bonds & Fixed Income

    A Look At National Debt And Government Bonds

    Learn the functions of the U.S. Treasury, and find out how and why it issues debt.
  2. Economics

    Austerity: When The Government Tightens Its Belt

    When a government tightens its belt in tough economic times the entire nation feels the squeeze.
  3. Economics

    How Governments Influence Markets

    The biggest influence in the markets today can create some unintended consequences.
  4. Entrepreneurship

    Government Regulations: Do They Help Businesses?

    These rules are in place to protect consumers and help businesses thrive at the same time.
  5. Retirement

    Navigating Government And Nonprofit Financial Statements

    Learn how to trace where your tax dollars and charitable donations are going.
  6. Active Trading

    Giants Of Finance: John Maynard Keynes

    This rock star of economics advocated government intervention at a time of free-market thinking.
  7. Economics

    Explaining Residual Value

    Residual value is a measurement of how much a fixed asset is worth at the end of its lease, or at the end of its useful life.
  8. Economics

    What is the Cash Ratio?

    The cash ratio is the ratio of a company's total cash and cash equivalents to its current liabilities.
  9. Economics

    Understanding Marginal Benefit

    Marginal benefit is an economic term that describes the maximum amount a consumer is willing to pay for an additional unit of a good or service.
  10. Fundamental Analysis

    Understanding the Simple Random Sample

    A simple random sample is a subset of a statistical population in which each member of the subset has an equal probability of being chosen.

You May Also Like

Hot Definitions
  1. Carrying Value

    An accounting measure of value, where the value of an asset or a company is based on the figures in the company's balance ...
  2. Capital Account

    A national account that shows the net change in asset ownership for a nation. The capital account is the net result of public ...
  3. Brand Equity

    The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent. ...
  4. Adverse Selection

    1. The tendency of those in dangerous jobs or high risk lifestyles to get life insurance. 2. A situation where sellers have ...
  5. Wash Trading

    The process of buying shares of a company through one broker while selling shares through a different broker. Wash trading ...
Trading Center