Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: finance, financial, stock trading, payroll, financial advisor, money, tax advisor, inventory,
Definition of Price Index
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.
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.
The reference year when constructing a price index. By tradition it is given the value 100.
A method for restating financial statements by reducing or
A price index used to deflate a nominal value to a real value by dividing the nominal value by the price deflator.
price index used to deflate nominal GDP to real GDP by dividing nominal GDP by the GDP deflator.
A series of numbers measuring percentage changes over time from a base period. The index number for the base period is by convention set equal to 100.
Bond whose payments are linked to an index, e.g. the consumer price 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.
GDP expressed in base-year dollars, calculated by dividing nominal GDP by a price index.
Income expressed in base-year dollars, calculated by dividing nominal income by a price index.
Money supply expressed in base-year dollars, calculated by dividing the money supply by a price index.
Wage expressed in base-year dollars, calculated by dividing the money wage by a price index.
The quantity of imports that can be obtained for a unit of exports, measured by the ratio of an export price index to an import price index.
The price at which a willing buyer and a willing unrelated seller would freely agree to
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
Designing a portfolio so that its performance will match the performance of some bond index.
Buying the index
Purchasing the stocks in the S&P 500 in the same proportion as the index to achieve the
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.
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.
Dollar price of a bond
Percentage of face value at which a bond is quoted.
The European, Australian, and Far East stock index, computed by Morgan Stanley.
Effective call price
The strike price in an optional redemption provision plus the accrued interest to the
Also called indexing plus, an indexing strategy whose objective is to exceed or replicate
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
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.
The highest (intraday) price of a stock over the past 52 weeks, adjusted for any stock splits.
An index is a statistical measure of a market based on the performance of a sample of securities in that market. For example, the S&P/TSX Composite index reflects the performance of the most actively traded stocks on The Toronto Stock Exchange.
Index and Option Market (IOM)
A division of the CME established in 1982 for trading stock index
An investment/trading strategy that exploits divergences between actual and theoretical
Investment fund designed to match the returns on a stockmarket index.
Mutual funds that aim to track the performance of a specific stock or bond index. This process is also referred to as indexing and passive management.
A model of stock returns using a market index such as the S&P 500 to represent common or
A call or put option based on a stock market index.
Index Portfolio Rebalancing Service (IPRS)
index Portfolio Rebalancing Service (IPRS) is a comprehensive investment service that can help increase potential returns while reducing volatility. Several portfolios are available, each with its own strategic balance of index Funds. IPRS maintains your personal asset allocation by monitoring and rebalancing your portfolio semi-annually.
A stock index option issued by either a corporate or sovereign entity as part of a security
The adjustment of benefits to compensate for the effects of inflation.
A passive instrument strategy consisting of the construction of a portfolio of stocks designed to
The price that the buyer of a futures contract must pay the seller when a Treasury Bond is delivered.
An index that uses the capital asset pricing model to determine whether a money manager
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
Measure of the investment performance of the overall market.
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 value-weighted index
An index of a group of securities computed by calculating a weighted average
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
Optimization approach to indexing
An approach to indexing which seeks to Optimize some objective, such
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
present value index
see profitability index
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
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
Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.