Plunge Team

AAA

DEFINITION of 'Plunge Team'

A colloquial reference to a group of economic leaders within the United States whose purpose is to ensure the nation's financial markets are efficient, competitive, and provide confidence for investors.

INVESTOPEDIA EXPLAINS 'Plunge Team'

Created by Ronald Reagan in 1988 to deal with the crash of 1987, the group was formed due to Executive Order 12631.

RELATED TERMS
  1. Stock Market Crash Of 1987

    A rapid and severe downturn in stock prices that occurred in ...
  2. Black Monday

    October 19, 1987, when the Dow Jones Industrial Average (DJIA) ...
  3. Efficient Market Hypothesis - EMH

    An investment theory that states it is impossible to "beat the ...
  4. Private Finance Initiative - PFI

    A method of providing funds for major capital investments where ...
  5. Fintech

    Fintech is a portmanteau of financial technology that describes ...
  6. Endowment Effect

    The endowment effect describes a circumstance in which an individual ...
RELATED FAQS
  1. How is a market failure prevented with regard to public goods?

    It was once commonly accepted that any public good constituted a market failure and provided necessary and sufficient conditions ... Read Full Answer >>
  2. What factors influence competition in microeconomics?

    From a microeconomics perspective, competition can be influenced by five basic factors: product features, the number of sellers, ... Read Full Answer >>
  3. How is a market failure corrected?

    Imperfect market outcomes are corrected through a reallocation of resources or change in incentive structure. Economists ... Read Full Answer >>
  4. What are the advantages of free trade over mercantilism?

    Free trade provides advantages over mercantilism for individuals, businesses and nations. A key advantage of free trade for ... Read Full Answer >>
  5. How does money supply affect inflation?

    Definitions matter when describing the relationship between changes in the money stock, or total money supply, and inflation. ... Read Full Answer >>
  6. What are the different ways that utility is measured in economics?

    It's difficult to measure a qualitative concept such as utility, but economists try to quantify it in two different ways: ... Read Full Answer >>
Related Articles
  1. Economics

    What is Adverse Selection?

    Adverse selection occurs when one party in a transaction has more information than the other, especially in insurance and finance-related activities.
  2. Economics

    What is a Capital Account?

    Capital account is an economic term that refers to the net change in investment and asset ownership for a nation.
  3. Fundamental Analysis

    Explaining Expected Return

    The expected return is a tool used to determine whether or not an investment has a positive or negative average net outcome.
  4. Economics

    What is a Fiduciary?

    A fiduciary is a person who acts on behalf of another person (or people) to manage assets.
  5. Economics

    Explaining Property, Plant and Equipment

    Property, plant and equipment are company assets that are vital to business operations, but not easily liquidated.
  6. Economics

    Explaining PFIs and PPPs

    Public-private partnerships (PPP) and Private Finance Initiative (PFI) are two business relationships between government agencies and private businesses.
  7. Economics

    How to Calculate Trailing 12 Months Income

    Trailing 12 months refers to the most recently completed one-year period of a company’s financial performance.
  8. Fundamental Analysis

    Explaining Standard Error

    Standard error is a statistical term that measures the accuracy with which a sample represents a population.
  9. Economics

    What is Market Failure?

    Market failure happens when economic conditions cause a market to be unable to reach supply/demand market equilibrium.
  10. Economics

    Understanding Externality

    An externality is a consequence of an economic activity that is experienced by unrelated third parties.

You May Also Like

Hot Definitions
  1. Adverse Selection

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

    The process of buying shares of a company through one broker while selling shares through a different broker. Wash trading ...
  3. Fixed-Income Arbitrage

    An investment strategy that attempts to profit from arbitrage opportunities in interest rate securities. When using a fixed-income ...
  4. Venture-Capital-Backed IPO

    The selling to the public of shares in a company that has previously been funded primarily by private investors. The alternative ...
  5. Merger Arbitrage

    A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless ...
  6. Market Failure

    An economic term that encompasses a situation where, in any given market, the quantity of a product demanded by consumers ...
Trading Center