Search results for: “price index”
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Price Discovery Process
The process of determining the prices of the assets in the marketplace through the interactions of buyers and sellers….
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Price Elasticities
The percentage change in the quantity divided by the percentage change in the price….
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Option Price
Also called the option premium, the price paid by the buyer of the options contract for the right to buy or sell a security at a specified price in the future….
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Opening Price
The range of prices at which the first bids and offers were made or first transactions were completed….
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Nominal Price
Price quotations on futures for a period in which no actual trading took place….
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Minimum Price Fluctuation
Smallest increment of price movement possible in trading a given contract. Also called point or tick. The zero-beta portfolio with the least risk….
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Maximum Price Fluctuation
The maximum amount the contract price can change, up or down, during one trading session, as fixed by exchange rules in the contract specification. Related: limit price….
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Marketplace Price Efficiency
The degree to which the prices of assets reflect the available marketplace information. Marketplace price efficiency is sometimes estimated as the difficulty faced by active management of earning a greater return than passive management would, after adjusting for the risk associated with a […]
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Market Price Of Risk
A measure of the extra return, or risk premium, that investors demand to bear risk. The reward-to-risk ratio of the market portfolio….
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Market Conversion Price
Also called conversion parity price, the price that an investor effectively pays for common stock by purchasing a convertible security and then exercising the conversion option. This price is equal to the market price of the convertible security divided by the conversion ratio….
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Low Price
This is the day’s lowest price of a security that has changed hands between a buyer and a seller….
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Low Price-Earnings Ratio Effect
The tendency of portfolios of stocks with a low price-earnings ratio to outperform portfolios consisting of stocks with a high price-earnings ratio….
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Limit Price
Maximum price fluctuation…
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Law Of One Price
An economic rule stating that a given security must have the same price regardless of the means by which one goes about creating that security. This implies that if the payoff of a security can be synthetically created by a package of other securities, the price of the package and the price of […]
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Invoice Price
The price that the buyer of a futures contract must pay the seller when a Treasury Bond is delivered….