Search results for: “price index”
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Reverse Price Risk
A type of mortgage-pipeline risk that occurs when a lender commits to sell loans to an investor at rates prevailing at application but sets the note rates when the borrowers close. The lender is thus exposed to the risk of falling rates….
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Put Price
The price at which the asset will be sold if a put option is exercised. Also called the strike or exercise price of a put option….
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Price-Volume Relationship
A relationship espoused by some technical analysts that signals continuing rises and falls in security prices based on accompanying changes in volume traded….
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Price/Book Ratio
Compares a stock’s market value to the value of total assets less total liabilities (book value). Determined by dividing current stock price by common stockholder equity per share (book value), adjusted for stock splits. Also called Market-to-Book….
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Price/Earnings Ratio
Shows the multiple of earnings at which a stock sells. Determined by dividing current stock price by current earnings per share (adjusted for stock splits). Earnings per share for the P/E ratio is determined by dividing earnings for past 12 months by the number of common […]
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Price/Sales Ratio
Determined by dividing current stock price by revenue per share (adjusted for stock splits). Revenue per share for the P/S ratio is determined by dividing revenue for past 12 months by number of shares outstanding….
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Priced Out
The market has already incorporated information, such as a low dividend, into the price of a stock….
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Price Impact Costs
Related: market impact costs…
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Price Momentum
Related: Relative strength…
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Price Persistence
Related: Relative strength…
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Price Risk
The risk that the value of a security (or a portfolio) will decline in the future. Or, a type of mortgage-pipeline risk created in the production segment when loan terms are set for the borrower in advance of terms being set for secondary market sale. If the general level of rates rises during […]
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Price Takers
Individuals who respond to rates and prices by acting as though they have no influence on them….
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Price Value Of A Basis Point (Pvbp)
Also called the dollar value of a basis point, a measure of the change in the price of the bond if the required yield changes by one basis point….
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Price-Specie-Flow Mechanism
Adjustment mechanism under the classical gold standard whereby disturbances in the price level in one country would be wholly or partly offset by a countervailing flow of specie (gold coins) that would act to equalize prices across countries and automatically bring international payments back […]
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Price Compression
The limitation of the price appreciation potential for a callable bond in a declining interest rate environment, based on the expectation that the bond will be redeemed at the call price….