Updated: Aug 20, 2021

Effectively, a method of supporting a price. The government subsidizes prices when it allows goods to be sold at a price lower than the market price, by giving the seller the difference between the selling price and a viable one. The term subsidy is also used for a sum of money given by one person to another to help him over a difficult period.

Reference: The Penguin Business Dictionary, 3rd edt.

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James Knight
Editor of Education
James is a lead content editor for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and the… read more.