Production Externality: Definition, Measuring, and Examples

What Are Production Externalities? Production externality refers to a side effect from an industrial operation, such as a paper mill producing waste that is dumped into a river. Production externalities are usually unintended, and their impacts are typically unrelated to and unsolicited by anyone. They can have economic, social, or environmental side effects. Production externalities can…

Private Securities Litigation Reform Act (PSLRA) Definition

What Is the Private Securities Litigation Reform Act (PSLRA)? The Private Securities Litigation Reform Act (PSLRA) is a piece of legislation passed by Congress in 1995 to stem the filing of frivolous or unwarranted securities lawsuits. The Private Securities Litigation Reform Act increased the amount of evidence that plaintiffs are required to present before filing…

Banking And Securities Industry Committee (BASIC) Definition

What Is the Banking and Securities Industry Committee (BASIC)? The Banking and Securities Industry Committee (BASIC) was established in 1970 to standardize, automate, and streamline the processing of stock certificates and options. This committee sought to uphold uniform rules and regulations regarding the trading and settlement of securities. The Banking and Securities Industry Committee attempted…