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Bargain issue |
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Bargain issueA term used by value investors to describe the issue of shares in a company at a price below the per share book value of the company. In other words, the shares are undervalued from the word go.Similar MatchesBargainBargainA term used on the London Stock Exchange to describe a share purchase or sale. The term does not imply that the transaction was a 'special price' in the normal sense of the word.Note that the LSE collates its information on bargains from brokers' contract notes which means that it reports a single transaction as two bargains (one buy and one sell). The significance of this is that other exchanges often report a transaction as a single bargain, so if you were ever comparing the number of bargains of exchanges, the LSE figures would need to be divided by two. Bargain purchase price optionBargain purchase price optionGives the lessee the option to purchase the asset at a price below fair market value when the lease expires. Bargain hunterBargain hunterIn the context of general equities, purchaser who is extremely selective in the price sought on a transaction. Matched bargainMatched bargainA system of share trading which relies on matching sale orders with corresponding orders to buy. Because there needs to be a buyer for every seller, and vice versa, the marketability of shares which are traded on a matched bargain basis can be poor. In other words, you may not be able to buy when you want to buy, and if you own shares you may not be able to sell when you want to sell. This is known as illiquidity, and is a very negative attribute.Shares traded on the London Stock Exchange are more liquid because they are traded either on the order book (SETS for the very largest companies) or on the quote book (SEAQ). Bargain conditions applyBargain conditions applyA term used by the London Stock Exchange to denote that certain conditions were agreed between the two participants at the time of trading. |
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