|Marketplace price efficiency|
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: stock trading, business, payroll, financial advisor, inventory control, financial, inventory, tax advisor,
Also see related: home buyer, credit, homes, home, homebuyer, homebuying, buy home, first time homebuyer, mortgage,
Definition of Marketplace price efficiency
Marketplace price efficiency
The degree to which the prices of assets reflect the available marketplace
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
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.
Reflects the relative amount of wealth wasted in making transactions. An efficient
Bond price excluding accrued interest.
The CPI, as it is called, measures the prices of consumer goods and services and is a
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.
Effective call price
The strike price in an optional redemption provision plus the accrued interest to the
Reflects the amount of wasted energy.
Equilibrium market price of risk
The slope of the capital market line (CML). Since the CML represents the
The price at which the underlying future or options contract may be bought or sold.
Related: pricing efficiency.
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.
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.
The speed and accuracy with which prices reflect new information.
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
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
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,
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
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
Also called the option premium, the price paid by the buyer of the options contract for the right
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
Adjustment mechanism under the classical gold standard whereby
A relationship espoused by some technical analysts that signals continuing rises
Also called external efficiency, a market characteristic where prices at all times fully
The price at which the asset will be sold if a put option is exercised. Also called the strike or
Reverse price risk
A type of mortgage-pipeline risk that occurs when a lender commits to sell loans to an
Semi-strong form efficiency
A form of pricing efficiency where the price of the security fully reflects all
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
The stated price per share for which underlying stock may be purchased (in the case of a call) or
Pricing efficiency, where the price of a, security reflects all information, whether or
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.
Variable price security
A security, such as stocks or bonds, that sells at a fluctuating, market-determined price.
Weak form efficiency
A form of pricing efficiency where the price of the security reflects the past price and
SPECIFIC INVOICE PRICES
An inventory valuation method in which a company values the items in its ending inventory based
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.
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.
price/earnings ratio (price to earnings ratio, P/E ratio, PE ratio)
This key ratio equals the current market price
Price to Earnings Ratio (P/E, PE Ratio)
A measure of how much investors are willing to pay for each dollar
a measure of the degree to which tasks were performed
labor efficiency variance
the number of hours actually worked minus the standard hours allowed for the production
manufacturing cycle efficiency (MCE)
a ratio resulting from dividing the actual production time by total lead time;
material price variance
total actual cost of material purchased
negotiated transfer price
an intracompany charge for goods
overhead efficiency variance
the difference between total budgeted overhead at actual hours and total budgeted
a practice by which firms conspire to set a products
an internal charge established for the exchange
variable overhead efficiency variance
the difference between budgeted variable overhead based on actual input activity and variable overhead applied to production
The price set for buying an asset (call) or selling an asset (put).
price actually paid for a security. Typically the purchase
Rho - The rate of change in a derivative’s price relative to the underlying
security’s risk-free interest rate.
See Exercise price.
Labor efficiency variance
The difference between the amount of time that was budgeted
Materials price variance
The difference between the actual and budgeted cost to
Selling price variance
The difference between the actual and budgeted selling price for
The price at which one part of a company sells a product or service to
law of one price
Theory that prices of goods in all countries should be equal when translated to a common currency.
Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.