Price Action

Price Action Fluctuations or changes in price of a security. Represented graphically in analysis tools like charts. … [Read more...]

Price/Book Ratio

Price/Book Ratio Ratio comparing market value of stock with total value of assets minus liabilities. Assets and liabilities are taken at book value. Formula: current stock price dividend by common shareholding equity per share. Stock splits are adjusted against this equity value. … [Read more...]

Price/Earnings Ratio

Price/Earnings Ratio Formula for stock analysis where current stock price is divided by current earnings per share of the company. Earning per share is calculated by dividing the past 12 month earnings by common shares outstanding. High P/E ratio signifies an optimistic attitude … [Read more...]

Price/Sales Ratio

Price/Sales Ratio Ratio calculated by dividing stock price current levels by revenue per each share (stock splits are adjusted). The past 12 month earnings divided by the total number of outstanding shares gives the revenue per share. … [Read more...]

Price Compression

Price Compression During falling interest rate climate, the pressure exerted to push down price increase on callable bond. This pressure arises because in face of rising interest the bond can be repaid on call. … [Read more...]

Price Discovery Process

Price Discovery Process Discovering the marketplace price of assets through the quotes given by sellers and purchasers. … [Read more...]

Price Elasticities

Price Elasticities Represented in percentage, fluctuation in quantity divided by change in price. … [Read more...]

Price Impact Costs

Price Impact Costs Refer: market impact costs. … [Read more...]

Price Improvement

Price Improvement Improvement in price at the time of actual transaction as compared with that quoted when the order was placed. Denotes a higher price during sale and lower price during purchase. … [Read more...]

Price Momentum

Price Momentum Refer: Relative strength. Performance of stock when compared with related industry or that of the industry when compared with the market. … [Read more...]

Price Persistence

Price Persistence Refer: Relative strength. … [Read more...]

Price Risk

Price Risk - Inherent risk in securities that price will decline in future. - Production segment mortgage pipeline risk when terms of loan are established for borrowers before terms are established for sale in secondary market. In event of interest rate increases during … [Read more...]

Price Takers

Price Takers Investors who make orders that are too small to impact price levels significantly. … [Read more...]

Priced Out

Priced Out Situation where expected announcements are factored into stock price to avert volatility. … [Read more...]

Price Value of a Basis Point (PVBP)

Price Value of a Basis Point (PVBP) A technique of attributing to one basis point of yield the equivalent change in bond price. Also referred to as the basis point’s dollar value. … [Read more...]

Prices

Prices Share price for common stock on a specific date. Highest and lowest prices depends on price traded on intraday. … [Read more...]

Price-Specie-Flow Mechanism

Price-Specie-Flow Mechanism Used with gold standard. Fluctuations in prices in a country adjusted completely or partially by an inflow or outflow of gold or specie. This adjusts the price levels across borders and equalized them bringing balance in international transactions and … [Read more...]

Price-Volume Relationship

Price-Volume Relationship Link between price and volume that shows that security prices may rise or fall in relation to the actual volumes that are traded in these securities. … [Read more...]

Pricing Efficiency

Pricing Efficiency Phenomenon where the price of securities always reflects all the factors and various kinds of information that cause changes in the value of securities. Also known as external efficiency. … [Read more...]

Primary Market

Primary Market Market where buyers transact directly with issuer of a security to purchase it. Subsequent transactions take place in the secondary market from other buyers and sellers. … [Read more...]