|Variable price security|
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Definition of Variable price security
Variable price security
A security, such as stocks or bonds, that sells at a fluctuating, market-determined price.
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.
A security that is collateralized by loans, leases, receivables, or installment contracts
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.
Bond price excluding accrued interest.
The CPI, as it is called, measures the prices of consumer goods and services and is a
A random value that can take any fractional value within specified ranges, as
Related:Market conversion price
The contractually specified price per share at which a convertible security can be
A security that can be converted into common stock at the option of the security holder,
The price fixed by the Clearing house at which deliveries on futures are in invoiced; also the
A financial security, such as an option, or future, whose value is derived in part from 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.
Discrete random variable
A random variable that can take only a certain specified set of discrete possible
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
A value determined within the context of a model.
Equilibrium market price of risk
The slope of the capital market line (CML). Since the CML represents the
security that grants the security holder the right to exchange the security for the
The price at which the underlying future or options contract may be bought or sold.
A variable whose value is determined outside the model in which it is used. Also called
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
A nonnegotiable debt security that can be redeemed at some fixed price or according to
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 security to which a warrant is attached.
A convertible security whose optioned common stock is trading in a middle range, causing
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,
Marketplace price efficiency
The degree to which the prices of assets reflect the available marketplace
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
Monthly income preferred security (MIP)
Preferred stock issued by a subsidiary located in a tax haven.
Mortgage pass-through security
Also called a passthrough, a security created when one or more mortgage
price quotations on futures for a period in which no actual trading took place.
Normal random variable
A random variable that has a normal probability distribution.
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
An instrument such as a stock or bond for which payments depend only on the financial
The price at which the asset will be sold if a put option is exercised. Also called the strike or
A function that assigns a real number to each and every possible outcome of a random experiment.
Reverse price risk
A type of mortgage-pipeline risk that occurs when a lender commits to sell loans to an
Piece of paper that proves ownership of stocks, bonds and other investments.
Security characteristic line
A plot of the excess return on a security over the risk-free rate as a function of
Security deposit (initial)
Synonymous with the term margin. A cash amount of funds that must be deposited
Security deposit (maintenance)
Related: Maintenance margin security market line (SML). A description of
Security market line
Line representing the relationship between expected return and market risk.
Security selection decision
Choosing the particular securities to include in a portfolio.
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
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.
Options: the security subject to being purchased or sold upon exercise of an option
A value determined within the context of a model. Also called endogenous variable.
Annuity contracts in which the issuer pays a periodic amount linked to the investment
A cost that is directly proportional to the volume of output produced. When production is zero,
Variable life insurance policy
A whole life insurance policy that provides a death benefit dependent on the
Variable rate CDs
Short-term certificate of deposits that pay interest periodically on roll dates. On each roll
Variable rated demand bond (VRDB)
Floating rate bond that can be sold back periodically to the issuer.
Variable rate loan
Loan made at an interest rate that fluctuates based on a base interest rate such as the
SPECIFIC INVOICE PRICES
An inventory valuation method in which a company values the items in its ending inventory based
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