|Arm's length price|
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Definition of Arm's length price
Arm's length price
The price at which a willing buyer and a willing unrelated seller would freely agree to
Adjustable rate mortgage. A mortgage that features predetermined adjustments of the loan interest rate
Also known as a trading index (TRIN)= (number of advancing issues)/ (number of declining
A dealer's price to sell a security; also called the offer price.
Gives the lessee the option to purchase the asset at a price below fair market
price expressed in terms of yield to maturity or annual rate of return.
This is the quoted bid, or the highest price an investor is willing to pay to buy a security. Practically
The price, specified at issuance, at which the issuer of a bond may retire part of the bond at a
The price for which a bond can be repaid before maturity under a call provision.
Bond price excluding accrued interest.
The CPI, as it is called, measures the prices of consumer goods and services and is a
An index calculated by tracking the cost of a typical bundle of consumer goods and services over time. It is commonly used to measure inflation.
Related:Market conversion price
The contractually specified price per share at which a convertible security can be
The price fixed by the Clearing house at which deliveries on futures are in invoiced; also the
Bond price including accrued interest, i.e., the price paid by the bond buyer.
Dollar price of a bond
Percentage of face value at which a bond is quoted.
Inventory that has been physically marked as being for a
Effective call price
The strike price in an optional redemption provision plus the accrued interest to the
Equilibrium market price of risk
The slope of the capital market line (CML). Since the CML represents the
Escalating Price Option
A nonqualified stock option that uses a sliding scale for
The price at which the underlying future or options contract may be bought or sold.
The price set for buying an asset (call) or selling an asset (put).
Fair market price
Amount at which an asset would change hands between two parties, both having
The equilibrium price for futures contracts. Also called the theoretical futures price, which equals
Fair price provision
Farm Improvement and Marketing Cooperatives Loans Act
Fixed price basis
An offering of securities at a fixed price.
Fixed-price tender offer
A one-time offer to purchase a stated number of shares at a stated fixed price,
Flat price (also clean price)
The quoted newspaper price of a bond that does not include accrued interest.
Flat price risk
Taking a position either long or short that does not involve spreading.
Also called dirty price, the price of a bond including accrued interest. Related: flat price.
The price at which the parties to a futures contract agree to transact on the settlement date.
Garmen-Kohlhagen option pricing model
A widely used model for pricing foreign currency options.
Warrant that allows the user to purchase a bond only by surrendering an existing bond
The highest (intraday) price of a stock over the past 52 weeks, adjusted for any stock splits.
The price that the buyer of a futures contract must pay the seller when a Treasury Bond is delivered.
Law of one price
An economic rule stating that a given security must have the same price regardless of the
law of one price
Theory that prices of goods in all countries should be equal when translated to a common currency.
Maximum price fluctuation
Maximum price fluctuation
This is the day's lowest price of a security that has changed hands between a buyer and a seller.
Low price-earnings ratio effect
The tendency of portfolios of stocks with a low price-earnings ratio to
Market conversion price
Also called conversion parity price, the price that an investor effectively pays for
Market price of risk
A measure of the extra return, or risk premium, that investors demand to bear risk. The
The amount of money that a willing buyer pays to acquire something from a willing seller,
Marketplace price efficiency
The degree to which the prices of assets reflect the available marketplace
material price variance
total actual cost of material purchased
Materials price variance
The difference between the actual and budgeted cost to
Maximum price fluctuation
The maximum amount the contract price can change, up or down, during one
Minimum price fluctuation
Smallest increment of price movement possible in trading a given contract. Also
negotiated transfer price
an intracompany charge for goods
price quotations on futures for a period in which no actual trading took place.
The range of prices at which the first bids and offers were made or first transactions were
Optimum selling price
The price at which profit is maximized, which takes into account the cost behaviour of fixed and variable costs and the relationship between price and demand for a product/service.
Also called the option premium, the price paid by the buyer of the options contract for the right
A firm that reacts to excess supply or excess demand by adjusting price rather than quantity. Contrast with quantity adjuster.
Compares a stock's market value to the value of total assets less total liabilities (book
The limitation of the price appreciation potential for a callable bond in a declining interest
Price discovery process
The process of determining the prices of the assets in the marketplace through the
price-earnings (P/E) multiple (ratio)
Ratio of stock price to earnings per share.
Price / Earnings (P/E) Ratio
The ratio of price to earnings. Faster growing or less-risky firms typically have higher P/E ratios than either slower-growing or more risky firms.
Price/earnings ratio (PE ratio)
Shows the "multiple" of earnings at which a stock sells. Determined by dividing current
price/earnings ratio (price to earnings ratio, P/E ratio, PE ratio)
This key ratio equals the current market price
The percentage change in the quantity divided by the percentage change in the price.
a practice by which firms conspire to set a products
Ease with which prices adjust in response to excess supply or demand.
Price impact costs
Related: market impact costs
A measure of the price level calculated by comparing the cost of a bundle of goods and services in a given year with its cost in a base year. See also index.
A weighted average of prices of all goods and services where the weights are given by total spending on each good or service. Measured by a price index.
Related: Relative strength
Related: Relative strength
The risk that the value of a security (or a portfolio) will decline in the future. Or, a type of
Price/sales ratio (PS Ratio)
Determined by dividing current stock price by revenue per share (adjusted for stock splits).
Adjustment mechanism under the classical gold standard whereby
Resistance of prices to change.
See market mechanism.
Individuals who respond to rates and prices by acting as though they have no influence on them.
Price to Earnings Ratio (P/E, PE Ratio)
A measure of how much investors are willing to pay for each dollar
Price value of a basis point (PVBP)
Also called the dollar value of a basis point, a measure of the change in
A relationship espoused by some technical analysts that signals continuing rises
The market has already incorporated information, such as a low dividend, into the price of a stock.
price of a share of common stock on the date shown. Highs and lows are based on the highest and
price actually paid for a security. Typically the purchase
The price at which the asset will be sold if a put option is exercised. Also called the strike or
Ratio of the price of one item to the price of another.
Reverse price risk
A type of mortgage-pipeline risk that occurs when a lender commits to sell loans to an
Rho - The rate of change in a derivative’s price relative to the underlying
security’s risk-free interest rate.
Selling price variance
The difference between the actual and budgeted selling price for
A figure determined by the closing range which is used to calculate gains and losses in
SPECIFIC INVOICE PRICES
An inventory valuation method in which a company values the items in its ending inventory based
The current marketprice of the actual physical commodity. Also called cash price.
Stated conversion price
At the time of issuance of a convertible security, the price the issuer effectively
The stated price per share for which underlying stock may be purchased (in the case of a call) or
See Exercise price.
price that the existing shareholders are allowed to pay for a share of stock in a rights offering.
Theoretical futures price
Also called the fair price, the equilibrium futures price.
The price at which one unit of a firm sells goods or services to another unit of the same firm.
The price at which goods or services are bought and sold within divisions of the same organization, as opposed to an arm’s-length price at which sales may be made to an external customer.
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