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Investments glossary

Price Fixing


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Quotes of the day:

Reality is the crutch for people who can\'t cope with drugs.

— Lily Tomlin

Price fixing is setting the price of a product or service, rather than allowing it to be determined naturally through free-market forces. Although antitrust legislation makes it illegal for businesses to fix their prices under specific circumstances, there is no legal protection against government price fixing. In an ill-fated attempt to end the Great Depression, for example, Franklin Roosevelt forced businesses to fix prices in the 1930s. However, this action may have actually prolonged the downturn.


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