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. After-sales Support

    After-sales support, sometimes called after-sales service, is ...
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. Retirement

    Best Freelancing Jobs For Retirees

    Retired from your job but still want to work? Here's how to turn your skills and know-how into a new freelancing career.
  8. Investing

    What’s The Essence Of Smart Beta In Fixed Income?

    In essence, smart beta strategies seek to re-write index rules to capture factors, such as value, quality, or low volatility, in their stock portfolios.
  9. Investing

    Welcome Back, Volatility

    Volatility is likely to resurface as the Federal Reserve gets closer to adjusting its monetary policy stance, even if that adjustment is a measured affair.
  10. Savings

    Best Ways To Save Money On College Textbooks

    Here are nine ways you can stretch your budget for college textbooks. No, wait – maybe make that ten.

You May Also Like

Hot Definitions
  1. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  2. Asset Class

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same ...
  3. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  4. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  5. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  6. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
Trading Center