Does "guaranteed floor" mean "good/stable footing"?

Question

And "Greenspan put" means "Greenspan said"?
Context:
Volcker, Greenspan, and Bernanke would all admit that the Cult of the Chairmanship is overdone in a way that is perilous to the financial markets. Why? Because market participants develop false expectations that, however brutal the crisis, the central bank can always step in to save the day (under Greenspan's tenure, this expectation of Fed intervention became known as the "Greenspan put," an insurance policy or guaranteed floor in the minds of stock investors.

AlpheccaStars · Accepted Answer

NL888(under Greenspan's tenure, this expectation of Fed intervention became known as the "Greenspan put," an insurance policy or guaranteed floor in the minds of stock investors.

Does "guaranteed floor" mean "good/stable footing"?
Metaphorically, yes. A "floor" is a price of a stock or value of a market index that has some level of resistance. There is also a "ceiling" of resistance. This band between floor and ceiling is called a "trading range."

If the price hits the floor, buyers will come into the market, assuming that they will get a bargain price, and the buying activity causes the price to rise.
If the value falls below the "floor", then that resistance evaporates, and sellers will flood in, sending the prices even lower.

But in this description, the Fed intervenes, becoming a buyer of last resort, and supporting that "floor."

NL888 · Answer

Thank you.
And "Greenspan put" means "Greenspan said"?

AlpheccaStars · Answer

No, "put" is stock market terminology. You will see puts, calls, options, spreads, etc. as somewhat complicated transactions related to buying and selling stock or commodities.

http://www.investopedia.com/terms/p/putoption.asp#axzz2DXU4IFZf

Does "guaranteed floor" mean "good/stable footing"?

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