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Financial Terms | |
Settlement price |
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Definition of Settlement priceSettlement priceA figure determined by the closing range which is used to calculate gains and losses in
Related Terms:Closing rangeAlso known as the range. The high and low prices, or bids and offers, recorded during the PitA specific area of the trading floor that is designed for the trading of commodities, individual futures, or Wild card optionThe right of the seller of a Treasury Bond futures contract to give notice of intent to deliver 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. Bank for International Settlements (BIS)An international bank headquartered in Basel, Switzerland, which 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 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. Cash settlement contractsFutures contracts, such as stock index futures, that settle for cash, not involving Clean priceBond price excluding accrued interest. 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 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. Effective call priceThe strike price in an optional redemption provision plus the accrued interest to the 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 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. 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. 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. Good delivery and settlement proceduresRefers to PSA Uniform Practices such as cutoff times on delivery High priceThe highest (intraday) price of a stock over the past 52 weeks, adjusted for any stock splits. Immediate settlementDelivery and settlement of securities within five business days. Invoice priceThe price that the buyer of a futures contract must pay the seller when a Treasury Bond is delivered. 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 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 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 negotiated transfer pricean intracompany charge for goods Nominal priceprice quotations on futures for a period in which no actual trading took place. Official Settlements AccountAn account within the balance of payments accounts showing the change in a country's official foreign exchange reserves. It is used to measure a balance of payments deficit or surplus. 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 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 Price FlexibilityEase with which prices adjust in response to excess supply or demand. Price impact costsRelated: market impact costs Price IndexA 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. Price LevelA 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. Price momentumRelated: Relative strength Price persistenceRelated: Relative strength Price riskThe 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). Price-specie-flow mechanismAdjustment mechanism under the classical gold standard whereby Price StickinessResistance of prices to change. Price SystemSee market mechanism. Price takersIndividuals who respond to rates and prices by acting as though they have no influence on them. Price to Earnings Ratio (P/E, PE Ratio)A measure of how much investors are willing to pay for each dollar Price value of a basis point (PVBP)Also called the dollar value of a basis point, a measure of the change in Price-volume relationshipA relationship espoused by some technical analysts that signals continuing rises Priced outThe market has already incorporated information, such as a low dividend, into the price of a stock. Pricesprice of a share of common stock on the date shown. Highs and lows are based on the highest and Purchase priceprice actually paid for a security. Typically the purchase Put priceThe price at which the asset will be sold if a put option is exercised. Also called the strike or Regular way settlementIn the money and bond markets, the regular basis on which some security trades are Relative PriceRatio of the price of one item to the price of another. Reverse price riskA type of mortgage-pipeline risk that occurs when a lender commits to sell loans to an Rho - The rate of change in a derivative’s price relative to the underlyingsecurity’s risk-free interest rate. Selling price varianceThe difference between the actual and budgeted selling price for SettlementWhen payment is made for a trade. Settlement dateThe date on which payment is made to settle a trade. For stocks traded on US exchanges, Settlement dateThe date when money first changes hands; i.e., when a buyer Settlement rateThe rate suggested in Financial Accounting Standard Board (FASB) 87 for discounting the Skip-day settlementThe trade is settled one business day beyond what is normal. SPECIFIC INVOICE PRICESAn inventory valuation method in which a company values the items in its ending inventory based Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |