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Financial Terms | |
Relative strength |
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Definition of Relative strengthRelative strengthA stock's price movement over the past year as compared to a market index (the S&P 500).
Related Terms:Multirule systemA technical trading strategy that combines mechanical rules, such as the CRISMA Price momentumRelated: relative strength Price persistenceRelated: relative strength Relative PriceRatio of the price of one item to the price of another. Relative purchasing power parity (RPPP)Idea that the rate of change in the price level of commodities in Relative valueThe attractiveness measured in terms of risk, liquidity, and return of one instrument relative to Relative yield spreadThe ratio of the yield spread to the yield level. ![]() Rho - The rate of change in a derivative’s price relative to the underlyingsecurity’s risk-free interest rate. Accelerated cost recovery system (ACRS)Schedule of depreciation rates allowed for tax purposes. Accounting systemA set of accounts that summarize the transactions of a business that have been recorded on source documents. actual cost systema valuation method that uses actual direct Arm's length priceThe price at which a willing buyer and a willing unrelated seller would freely agree to Ask priceA dealer's price to sell a security; also called the offer price. Automated storage/retrieval systemA racking system using automated systems Bargain-purchase-price optionGives the lessee the option to purchase the asset at a price below fair market Basis priceprice expressed in terms of yield to maturity or annual rate of return. ![]() Bid priceThis is the quoted bid, or the highest price an investor is willing to pay to buy a security. Practically business intelligence (BI) systema formal process for gathering and analyzing information and producing intelligence to meet decision making needs; requires information about Call priceThe price, specified at issuance, at which the issuer of a bond may retire part of the bond at a Call priceThe price for which a bond can be repaid before maturity under a call provision. charge-back systema system using transfer prices; see transfer Clean priceBond price excluding accrued interest. Clearing House Automated Payments System (CHAPS)A computerized clearing system for sterling funds Clearing House Interbank Payments System (CHIPS)An international wire transfer system for high-value Consumer Price Index (CPI)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 priceRelated:Market conversion price ![]() Convertible priceThe contractually specified price per share at which a convertible security can be cost control systema logical structure of formal and/or informal cost management system (CMS)a set of formal methods Delivery priceThe 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
Dirty priceBond price including accrued interest, i.e., the price paid by the bond buyer. Dollar price of a bondPercentage of face value at which a bond is quoted. Du Pont systemA breakdown of ROE and ROA into component ratios. Dupont system of financial controlHighlights the fact that return on assets (ROA) can be expressed in terms Effective call priceThe strike price in an optional redemption provision plus the accrued interest to the Electronic Federal Tax Payment Systems (EFTPS)An electronic funds transfer system used by businesses to remit taxes to the government. enterprise resource planning (ERP) systema packaged software program that allows a company to Enterprise resource planning systemA computer system used to manage all company Equilibrium market price of riskThe slope of the capital market line (CML). Since the CML represents the Escalating Price OptionA nonqualified stock option that uses a sliding scale for European Monetary System (EMS)An exchange arrangement formed in 1979 that involves the currencies Exercise priceThe price at which the underlying future or options contract may be bought or sold. Exercise priceThe price set for buying an asset (call) or selling an asset (put). Fair market priceAmount at which an asset would change hands between two parties, both having Fair priceThe equilibrium price for futures contracts. Also called the theoretical futures price, which equals Fair price provisionSee:appraisal rights. Federal Reserve SystemThe central bank of the U.S., established in 1913, and governed by the Federal Federal Reserve SystemThe central banking authority responsible for monetary policy in the United States. Fixed price basisAn offering of securities at a fixed price. Fixed-price tender offerA 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 riskTaking a position either long or short that does not involve spreading. flexible manufacturing system (FMS)a production system in which a single factory manufactures numerous variations Full priceAlso called dirty price, the price of a bond including accrued interest. Related: flat price. Futures priceThe price at which the parties to a futures contract agree to transact on the settlement date. High priceThe highest (intraday) price of a stock over the past 52 weeks, adjusted for any stock splits. hybrid costing systema costing system combining characteristics Imputation tax systemArrangement by which investors who receive a dividend also receive a tax credit for Interac systemCanada's bank machine and electronic debit system. If you use your bank card at a bank machine which displays the Interac symbol (and that bank machine is not your bank's machine), you will be charged a fee. Invoice priceThe price that the buyer of a futures contract must pay the seller when a Treasury Bond is delivered. job order costing systema system of product costing used Just-in-time inventory systemssystems that schedule materials/inventory to arrive exactly as they are just-in-time manufacturing systema production system that attempts to acquire components and produce inventory only as needed, to minimize product defects, and to Law of one priceAn economic rule stating that a given security must have the same price regardless of the law of one priceTheory that prices of goods in all countries should be equal when translated to a common currency. Limit priceMaximum price fluctuation Limit priceMaximum price fluctuation lock-box systemsystem whereby customers send payments to a post office box and a local bank collects and processes checks. Low priceThis is the day's lowest price of a security that has changed hands between a buyer and a seller. Low price-earnings ratio effectThe tendency of portfolios of stocks with a low price-earnings ratio to MACRS (Modified Accelerated Cost Recovery System)A depreciation method created by the IRS under the Tax Reform Act of 1986. Companies must use it to depreciate all plant and equipment assets installed after December 31, 1986 (for tax purposes). management control system (MCS)an information system that helps managers gather information about actual organizational occurrences, make comparisons against plans, management information system (MIS)a structure of interrelated elements that collects, organizes, and communicates Market conversion priceAlso called conversion parity price, the price that an investor effectively pays for Market price of riskA measure of the extra return, or risk premium, that investors demand to bear risk. The Market pricesThe amount of money that a willing buyer pays to acquire something from a willing seller, Marketplace price efficiencyThe degree to which the prices of assets reflect the available marketplace material price variancetotal actual cost of material purchased Materials price varianceThe difference between the actual and budgeted cost to Maximum price fluctuationThe maximum amount the contract price can change, up or down, during one Minimum price fluctuationSmallest increment of price movement possible in trading a given contract. Also Modified Accelerated Cost Recovery System (MACRS)Depreciation method that allows higher tax deductions in early years and lower deductions later. negotiated transfer pricean intracompany charge for goods Nominal priceprice quotations on futures for a period in which no actual trading took place. Nonsystematic riskNonmarket or firm-specific risk factors that can be eliminated by diversification. Also normal cost systema valuation method that uses actual Opening priceThe range of prices at which the first bids and offers were made or first transactions were Optimum selling priceThe 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. Option priceAlso called the option premium, the price paid by the buyer of the options contract for the right Overdraft Systemsystem whereby a depositor may write cheques in excess of the balance, with the bank automatically extending a loan to cover the shortage. performance management systema system reflecting the entire package of decisions regarding performance measurement and evaluation Periodic inventory systemAn inventory system in which the balance in the Inventory account is adjusted for the units sold only at the end of the period. Perpetual inventory systemAn inventory system in which the balance in the Inventory account is adjusted for the units sold each time a sale is made. Planning, programming and budgeting system (PPBS)A method of budgeting in which budgets are allocated to projects or programmes rather than to responsibility centres. PLUS systemA bank machine network outside Canada, across the U.S. and internationally. Customers who use a bank machine with a 'PLUS' symbol may be charged a fee. Price AdjusterA firm that reacts to excess supply or excess demand by adjusting price rather than quantity. Contrast with quantity adjuster. Price/book ratioCompares a stock's market value to the value of total assets less total liabilities (book Price compressionThe limitation of the price appreciation potential for a callable bond in a declining interest Price discovery processThe 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) RatioThe 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 Price elasticitiesThe percentage change in the quantity divided by the percentage change in the price. price fixinga practice by which firms conspire to set a products Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |