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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Expansion

Definition:

Expansion of your waistline is one thing; expansion in the economy is...a similar thing.

During times of expansion in the economy, there's lots of spending, lots of business activity, and lots of stuff being made (including wasitline-expanding food). This period of expansion usually means good things for the stock market because business is booming. After a few months or a few years of it, though, the economy slows down and contracts.