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Definition of Low price
This is the day's lowest price of a security that has changed hands between a buyer and a seller.
The tendency of portfolios of stocks with a low price-earnings ratio to
Adjustment mechanism under the classical gold standard whereby
The tendency of stocks preferred by the dividend discount model to share certain equity
Also known as the range. The high and low prices, or bids and offers, recorded during the
The high and low prices, or high and low bids and offers recorded during a specified time.
The difference between the high and low prices traded during a period of time;
A manager who seeks to buy stocks that are at a discount to their "fair value" and sell them at
Same as PV, but usually includes a subtraction for an initial cash outlay.
the value in today’s dollars of cash flows that occur in different time periods.
The price at which a willing buyer and a willing unrelated seller would freely agree to
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
A steep and rapid increase in price followed by a steep and rapid drop. This is an indicator seen
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.
In investments, it represents earnings before depreciation , amortization and non-cash charges.
Cash flow after interest and taxes
Net income plus depreciation.
Cash flow coverage ratio
The number of times that financial obligations (for interest, principal payments,
Cash flow from operations
A firm's net cash inflow resulting directly from its regular operations
Cash flow matching
Also called dedicating a portfolio, this is an alternative to multiperiod immunization in
Cash flow per common share
Cash flow from operations minus preferred stock dividends, divided by the
Cash flow time-line
Line depicting the operating activities and cash flows for a firm over a particular period.
Cash-flow break-even point
The point below which the firm will need either to obtain additional financing
Bond price excluding accrued interest.
Consumer Price Index (CPI)
The CPI, as it is called, measures the prices of consumer goods and services and is a
Conversion parity price
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
Devaluation A decrease in the spot price of the currency
Bond price including accrued interest, i.e., the price paid by the bond buyer.
Discounted cash flow (DCF)
Future cash flows multiplied by discount factors to obtain present values.
Discretionary cash flow
Cash flow that is available after the funding of all positive NPV capital investment
Dollar price of a bond
Percentage of face value at which a bond is quoted.
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
Equivalent annual cash flow
Annuity with the same net present value as the company's proposed investment.
The price at which the underlying future or options contract may be bought or sold.
Expected future cash flows
Projected future cash flows associated with an asset of decision.
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
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 risk
Taking a position either long or short that does not involve spreading.
Flat price (also clean price)
The quoted newspaper price of a bond that does not include accrued interest.
Government bonds that are acceptable at par in payment of federal estate taxes when owned by
An account for the investment credit to show all income statement benefits of the credit
The practice of reporting to shareholders using straight-line depreciation and
Free cash flows
Cash not required for operations or for reinvestment. Often defined as earnings before
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.
The highest (intraday) price of a stock over the past 52 weeks, adjusted for any stock splits.
Incremental cash flows
Difference between the firm's cash flows with and without a project.
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
Maximum price fluctuation
Low-coupon bond refunding
Refunding of a low coupon bond with a new, higher coupon bond.
Maximum price fluctuation
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
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
Nominal cash flow
A cash flow expressed in nominal terms if the actual dollars to be received or paid out are given.
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
Operating cash flow
Earnings before depreciation minus taxes. It measures the cash generated from
Also called the option premium, the price paid by the buyer of the options contract for the right
Related: retention rate.
Compares a stock's market value to the value of total assets less total liabilities (book
Price/earnings ratio (PE ratio)
Shows the "multiple" of earnings at which a stock sells. Determined by dividing current
Price/sales ratio (PS Ratio)
Determined by dividing current stock price by revenue per share (adjusted for stock splits).
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
The percentage change in the quantity divided by the percentage change in the price.
Price impact costs
Related: market impact costs
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
Individuals who respond to rates and prices by acting as though they have no influence on them.
The market has already incorporated information, such as a low dividend, into the price of a stock.
Price value of a basis point (PVBP)
Also called the dollar value of a basis point, a measure of the change in
price of a share of common stock on the date shown. Highs and lows are based on the highest and
A relationship espoused by some technical analysts that signals continuing rises
An agreement by the loan purchaser to allow the monthly loan quota to be
The price at which the asset will be sold if a put option is exercised. Also called the strike or
Real cash flow
A cash flow is expressed in real terms if the current, or date 0, purchasing power of the cash
Reverse price risk
A type of mortgage-pipeline risk that occurs when a lender commits to sell loans to an
Scheduled cash flows
The mortgage principal and interest payments due to be paid under the terms of the
A figure determined by the closing range which is used to calculate gains and losses in
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
Statement of cash flows
A financial statement showing a firm's cash receipts and cash payments during a
A method of cash budgeting that is organized along the lines of the statement of cash flows.
The stated price per share for which underlying stock may be purchased (in the case of a call) or
price that the existing shareholders are allowed to pay for a share of stock in a rights offering.
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