Price fluctuation (Business) Definition Online Encyclopedia

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Price fluctuation (Business) Definition Online Encyclopedia

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.

See: Maximum price fluctuation

The maximum price change allowed for a commodity futures contract per trading day. Limitation on asset dispositions

A market allowing the buying or selling of large quantities of an asset at any time and at low transaction s costs.

Beta: Gauging Price Fluctuation s

The Uses And Limits Of Volatility

An Introduction To Value at Risk (VAR)

How To Convert Value At Risk To Different Time Periods.

Minimum Price Fluctuation

Smallest increment of market price movement possible in a given futures or options contract. (Read more)

Minimum Quote Size

A London Stock Exchange term which refers to the minimum number of shares in which market makers must display prices on the SEAQ for those s.

Volatility: The price fluctuation s of a security or mutual fund relative to an appropriate market index. The more volatile a security or mutual fund, the more it is subject to rapid and extreme price fluctuation s relative to the market.

Candlestick chart A popular method of charting price fluctuation s that displays an asset’s opening, closing, high, and low prices for the period. Points on a candlestick chart are represented as a box, called the real body, with a vertical line on both the top and bottom.

Limit price Maximum price fluctuation

Limitation on asset dispositions A bond covenant that restricts in some way a firm’s ability to sell major

assets.

Limitation on liens A bond covenant that restricts in some way a firm’s ability to grant liens on its assets.

Related: minimum price fluctuation and tick. Point and figure chart A price-only chart that takes into account only whole integer changes in price, i.e. a 2-point change. Point and figure charting disregards the element of time and is solely used to record changes in price.

Following the Hamilton paper (1983), Mork (1989) has showed that extending the sample to 1988, the correlation becomes only marginally significant and that there are asymmetric effects between oil price fluctuation s and GDP growth.

The Goldman Sachs Commodity Index. now known as the S&P GSCI, is a diversified, production-weighted index that tracks the price fluctuation of commodities.

Maximum price fluctuation

Minimum price fluctuation

Monthly income preferred security

Preferred dividends.

Since part of the price fluctuation of a security is unique, it does not relate to price fluctuation s of other securities held. This allows the investor to diversify, or eliminate, a portion of each security's risk.

Since inventory value changes with price fluctuation s, it is important to know the method of valuation.

Over a course of several decades, real estate prices tend to appreciate, but they are not immune to short-term price fluctuation s. Buying a home can be a very emotional decision, but you should not let feelings interfere with the business aspect of your decision.

In the nineteenth century, Chicago’s trading pits offered an organized venue in which farmers and other suppliers of agricultural commodities, such as warehouse owners and brokers, could remove the risk of price fluctuation s from their business plan s.

Also, asset price fluctuation s tend to be proportional to those prices. For example, a 50 dollar stock might experience daily price fluctuation s on the order of one dollar while a 200 dollar stock might experience daily price fluctuation s on the order of four dollars.

Refers to the ceiling and floor of the price fluctuation of an underlying asset. A collar is usually set up with options, swaps, or by other agreements.

Beta: A measure of a security’s price fluctuation s (volatility) relative to an appropriate market index. For example, the Standard & Poor’s 500 Stock Index (S&P 500) has a beta of 1. Stocks with betas greater than 1 are subject to more rapid and extreme price fluctuation s than the market.

Commodity stocks managed by countries or international organizations to moderate market price fluctuation s. When prices rise above a pre-set ceiling, buffer stocks are sold, lowering market prices. When prices fall below an established floor price, buffer stocks are purchased, raising prices.

Buy-and-hold investors still need to take price fluctuation s into account, and they must pay attention to the stock’s ongoing performance. Naturally, the price at which you buy a stock directly affects the potential profits you’ll make from its sale.

Commodity stockpiles managed in such a way as to moderate price fluctuation s. Goods may be sold from a stockpile when prices reach or approach predetermined ceiling prices. and purchased for the stockpile when prices reach or approach predetermined floor levels.

As folks noticed these price fluctuation s, they became interested in investing in the commodity ETFs. There are hundreds of them on the market and more coming daily.

Beta Value A measure of the magnitude of a portfolio’s past share-price fluctuation s in relation to the ups and downs of the overall market (or appropriate market index ). The market (or index ) is assigned a beta of 1.00, so a portfolio with a beta of 1.

Historical Volatility refers to a measure of price fluctuation over time. Historical volatility uses daily, weekly, monthly etc. price data to empirical ly assess the past volatility of a market or an instrument.

High and low end of a security, commodity future, or market’s price fluctuation s over a period of time. Daily newspapers publish the 52-week high and low price range of stocks traded on the New York Stock Exchange, American Stock Exchange, and over-the-counter market s.

consumer price index is a monthly measure of price fluctuation s compiled by Statistics Canada. The consumer price index measures the retail price s of a basket of goods and services including food, transportation, housing, clothing, etc.

Historical volatility can be calculated by looking at price fluctuation s over a specific period in the past. Implied volatility can be implied from option price s observed in the market place.

Flags result from price fluctuation s within a narrow range and mark a consolidation before the previous move resumes.

As an example transaction by a consumer or producer of a metal designed to protect him against price fluctuation s. A consumer of platinum, for instance, may hedge against a possible price increase by buying enough metal to cover his needs in the form of a futures contract.

In security charts, the moving average is a curve that averages price fluctuation s of the security over a 50-day or 200-day interval. Each point on the moving average curve is calculated by averaging the closing price s from the previous 50 (or 200) days of trading.

Said of a securities market that is characterized by light trading, and larger price fluctuation s relative to volume than would be the case if trading is active.

Day trade rs takes advantage of small price fluctuation s of securities and does not hold them beyond one day. Day trade rs usually pay smaller trading commisions and are required by a trading facility to deposit an amount which usually starts at $5,000.

FLAG — A pattern reflecting price fluctuation s within a narrow range, generating a rectangular area on.

FLAG LOT — a parcel of land shaped like a flag; the staff is a narrow strip of land providing vehicular.

Limit Price Refer: Maximum price fluctuation . Price instructed by investor for limit order s. [Read more. ]

Author: Skip Stamous Filed Under: l Tagged With: L Glossary, Limit Price

COMPARABLE STORE SALES: Same store sales growth (adjusted for currency and gasoline price fluctuation s) were Q1, 2012 5%, Q4 2011 7%, Q3 6%, Q2 5%, and Q1 7%. In fiscal 2011 ended in August adjusted same store sales growth was 6%. This is very strong same store sales growth.

Stabilising speculation — Where the actions of speculator s tend to reduce price fluctuation s.

Stable dollar assumption — Is the assumption when using money as a measuring unit and preparing financial statements expressed in dollars, that the dollar is a stable unit of measurement.

See: Maximum price fluctuation

The maximum price change allowed for a commodity futures contract per trading day.

T4 = Market Value of Equity / Book Value of Total Liabilities. Adds market dimension that can show up security price fluctuation as a possible red flag .

T5 = Sales/ Total Assets. Standard measure for total asset turnover (varies greatly from industry to industry).

A transaction used as a protective maneuver intended to reduce the risk of loss from price fluctuation s of securities.

An adjustment in shipping charges to offset price fluctuation s in the cost of bunker fuel.

Bunker Fuel

The fuel used to power a ship.

Investment technique used to reduce potential of loss from price fluctuation s. Hedging involves taking an offsetting position in the market with the use of derivatives.

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Yo-Yo Stock

Stock that has volatile price fluctuation s and thus, rises and falls like a yo-yo.

An investment strategy to reduce risk of loss from price fluctuation s of securities.

That being said, brand loyalty is sometimes very sensitive to price fluctuation s. In the soft drink industry, many consumers will switch back and forth between Pepsi and Coke, depending on which is on sale.

Trading limit s are designed to protect investors from wild price fluctuation s and the potential for major losses. Theyre comparable to the circuit breakers established by stock exchanges to suspend trading when prices fall by a specific percentage.

Interest-rate risk is the potential for gains or losses resulting from fluctuations in the market price of fixed income securities. Such price fluctuation s are a consequence of changes in prevailing interest-rate levels.

Interim audit work.

Collar Agreement: Agreed upon adjustments in the number of shares offered in a stock-for-stock exchange to account for price fluctuation s before the completion of the deal.

Collateral: Assets than can be repossessed if a borrower defaults.

Most often investors assume real estate prices will not fall down and they only go up year after year. It is not so. During the mid 2009 some of the real estate investments were quoting below 30% to 40% from their 2007 prices. Real Estate investments are also prone for price fluctuation s.

Count analysis entails the usage of a series of X’s that are representing price increases, and O’s are representing price decreases, with a normal scale and a predetermined reversal amount. Investors examine the price fluctuation sequence to approximate future price movements.

The phrase may apply to a single security or to the entire stock market. In a thin market. price fluctuation s between transaction s are usually larger than when the market is liquid. A thin market in a particular stock may reflect lack of interest in that issue, or a limited supply of the stock.

The main producers of precious metals outside of South Africa are the United States, Canada, and Australia. These funds are known to be excellent inflation hedge s, but experience sometimes wild price fluctuation. placing them in the category of higher risk.

Liquidity is one of the most important characteristics of a good efficiently trading market. Less liquid market s often can have greater fluctuations in price and thus can create enhanced opportunities created by greater price fluctuation. compared to more liquid market s or securities.

Buyers are prohibited from paying points on HUD or Veterans’ Administration guaranteed loans (sellers can pay, however). On a conventional mortgage. points may be paid by either buyer or seller or split between them.Related: minimum price fluctuation .

Most of the commodity price fluctuation s come from the demand side of the equation and the supply-side effects are usually smaller. Hence the price of commodities is bound to rise as the demand rises for a finite supply of commodity.

Unit cost averaging Buying securities at intervals in order to smooth out the effect of price fluctuation s. Unit Trust An investment vehicles that allows investors to pool money. The fund grows or shrinks as investors add or withdraw money from it.

This is done by buying when the price is low and adding to the buffer stock, selling out of the buffer stock when the price is high, hoping to reduce the size of price fluctuation s. See international commodity agreement.

Building block

See stumbling block.

Built-in Agenda.

[ITDS] bunker adjustment factor An adjustment in shipping charges to offset price fluctuation s in the cost of bunker fuel. [ITDS] bunker c fuel oil (or bunkering fuel) Fuel used for ships. Generally refers to a No. 6 grade of residual fuel oil with an API gravity about 10.5o.


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