|Market conversion price
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Definition of Market conversion price
Market conversion price
Also called conversion parity price, the price that an investor effectively pays for
Related:market conversion price
an amount or percentage deducted from an equity interest to reflect lack of marketability.
model for calculating DLOM for minority interests r the discount rate
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.
markets in which the prevailing price is determined through the free interaction of
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.
Any market in which prices are in a declining trend.
This is the quoted bid, or the highest price an investor is willing to pay to buy a security. Practically
An illegal market.
A market where an intermediary offers search services to buyers and sellers.
Any market in which prices are in an upward trend.
The foreign market in the United Kingdom.
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.
The market for trading long-term debt instruments (those that mature in more than one year).
Capital market efficiency
Reflects the relative amount of wealth wasted in making transactions. An efficient
Capital market imperfections view
The view that issuing debt is generally valuable but that the firm's
Capital market line (CML)
The line defined by every combination of the risk-free asset and the market portfolio.
Cash conversion cycle
The length of time between a firm's purchase of inventory and the receipt of cash
Also called spot markets, these are markets that involve the immediate delivery of a security
Bond price excluding accrued interest.
An agreement between two or more countries that permits the free movement of capital
Common stock market
The market for trading equities, not including preferred stock.
Complete capital market
A market in which there is a distinct marketable security for each and every
Consumer Price Index (CPI)
The CPI, as it is called, measures the prices of consumer goods and services and is a
Rules set by the Chicago Board of Trade for determining the invoice price of each
The percentage by which the conversion price in a convertible security exceeds the
The contractually specified price per share at which a convertible security can be
The number of shares of common stock that the security holder will receive from
Also called parity value, the value of a convertible security if it is converted immediately.
Corner A Market
To purchase enough of the available supply of a commodity or stock in order to
A market where traders specializing in particular commodities buy and sell assets for their
The market for trading debt instruments.
The price fixed by the Clearing house at which deliveries on futures are in invoiced; also the
markets for derivative instruments.
Devaluation A decrease in the spot price of the currency
Direct search market
Buyers and sellers seek each other directly and transact directly.
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.
Part of a nation's internal market representing the mechanisms for issuing and trading
Effective call price
The strike price in an optional redemption provision plus the accrued interest to the
Efficient capital market
A market in which new information is very quickly reflected accurately in share
Efficient Market Hypothesis
In general the hypothesis states that all relevant information is fully and
In the interbank Eurodollar deposit market, an either-way market is one in which the bid
The financial markets of developing economies.
Equilibrium market price of risk
The slope of the capital market line (CML). Since the CML represents the
The money market for borrowing and lending currencies that are held in the form of
Excess return on the market portfolio
The difference between the return on the market portfolio and the
The price at which the underlying future or options contract may be bought or sold.
Also referred to as the international market, the offshore market, or, more popularly, the
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
Federal funds market
The market where banks can borrow or lend reserves, allowing banks temporarily
An organized institutional structure or mechanism for creating and exchanging financial assets.
The market for trading bonds and preferred stock.
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.
Use of a firm's call option on a callable convertible bond when the firm knows that the
Foreign banking market
That portion of domestic bank loans supplied to foreigners for use abroad.
Foreign bond market
That portion of the domestic bond market that represents issues floated by foreign
Foreign equity market
That portion of the domestic equity market that represents issues floated by foreign companies.
Part of a nation's internal market, representing the mechanisms for issuing and trading
Foreign market beta
A measure of foreign market risk that is derived from the capital asset pricing model.
A market in which participants agree to trade some commodity, security, or foreign
Direct trading in exchange-listed securities between investors without the use of a broker.
Also called dirty price, the price of a bond including accrued interest. Related: flat price.
A market in which contracts for future delivery of a commodity or a security are bought or sold.
The price at which the parties to a futures contract agree to transact on the settlement date.
Purchases and sales of eurobonds that occur before the issue price is finally set.
The highest (intraday) price of a stock over the past 52 weeks, adjusted for any stock splits.
Index and Option Market (IOM)
A division of the CME established in 1982 for trading stock index
spread The spread between the interest rate offered in two sectors of the bond market for
Intermarket spread swaps
An exchange of one bond for another based on the manager's projection of a
The mechanisms for issuing and trading securities within a nation, including its domestic
Internally efficient market
Operationally efficient market.
Related: See external market.
International Monetary Market (IMM)
A division of the CME established in 1972 for trading financial
Intramarket sector spread
The spread between two issues of the same maturity within a market sector. For
A futures market in which the nearer months are selling at price premiums to the more
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
A market is locked if the bid = ask price. This can occur, for example, if the market is
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
Maximum price fluctuation
Make a market
A dealer is said to make a market when he quotes bid and offered prices at which he stands
The process whereby the book value or collateral value of a security is adjusted to reflect
An arrangement whereby the profits or losses on a futures contract are settled each day.
The total dollar value of all outstanding shares. Computed as shares times current
Market capitalization rate
Expected return on a security. The market-consensus estimate of the appropriate
Total demand for loans by borrowers equals total supply of loans from lenders. The market,
The period between the 2 latest highs or lows of the S&P 500, showing net performance of a
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