|Price impact costs|
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Definition of Price impact costs
Price impact costs
Related: market impact costs
Also called price impact costs, the result of a bid/ask spread and a dealer's price concession.
The incremental costs of having an agent make decisions for a principal.
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.
costs that are identifiable with and able to be influenced by decisions made at the business
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.
When a cost is recorded originally as an increase
costs that increase with increases in the level of investment in current assets.
costs of maintaining current assets, including opportunity cost of capital.
Bond price excluding accrued interest.
The CPI, as it is called, measures the prices of consumer goods and services and is a
Consumer Price Index (CPI)
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.
Conversion parity price
Related:Market conversion price
The contractually specified price per share at which a convertible security can be
Costs Capitalized in Stealth
A particularly egregious form of aggressive cost capitalization
costs of financial distress
costs arising from bankruptcy or distorted business decisions before bankruptcy.
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
costs that are readily traceable to particular products or services.
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
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 difference between the execution price of a security and the price that would have
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
Financial distress costs
Legal and administrative costs of liquidation or reorganization. Also includes
costs that do not change with increases or decreases in the volume of goods or services
costs that do not depend on the level of output.
fixed expenses (costs)
Expenses or costs that remain the same in amount,
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.
costs, both implied and direct, associated with a transaction. Such costs include time, effort,
Also called dirty price, the price of a bond including accrued interest. Related: flat price.
The price of obtaining capital, either borrowed or equity, with intent to carry on business operations.
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 costs and benefits
costs and benefits that would occur if a particular course of action were
costs that are necessary to produce a product/service but are not readily traceable to particular products or services – see overhead.
Transaction costs that include the assessment of the investment merits of a financial asset.
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,
Market timing costs
costs that arise from price movement of the stock during the time of the transaction
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
The costs to firms of changing their prices.
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
The difference in the performance of an actual investment and a desired investment
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
Overhead generally refers to indirect, in contrast to direct,
The costs that relate to a period of time.
Policy Acquisition Costs
costs incurred by insurance companies in signing new policies, including expenditures on commissions and other selling expenses, promotion expenses, premium
The costs of additional regulation, including higher taxes, borne by large and
A form of start-up cost incurred in preparing for the opening of a new store or facility.
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.
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.
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