Net parity


 

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Net parity

Antithesis of gross parity. Convertibles: Price of a convertible security including accrued interest. International: Price of international security including commissions, fees, stamp duty, and other transaction costs, translated into U.S. dollar amounts.



Net parity

Similar Matches

Forward parity

Forward parity

Notion that the forward rate is an unbiased predictor of future spot exchange rates.


Covered Interest Rate Parity

Covered Interest Rate Parity

The principle that the yields from interest-bearing foreign and domestic investments should be equal when the forward currency market is used to predetermine the domestic currency payoff from a foreign investment.


Conversion parity or value

Conversion parity or value

Applies mainly to convertible securities. Common stock price at which a convertible bond can become exchangeable for common shares of equal value; value of a convertible bond based solely on the market value of the underlying equity. Par value + conversion ratio. See bond value, investment value, parity.


Central parity

Central parity

Par value.


Purchasing power parity

Purchasing power parity

1. The equality of the prices of a bundle of goods (usually the CPI) in two countries when valued at the prevailing exchange rate. Called absolute PPP. 2. The equality of the rates of change over time in the prices of a bundle of goods in two countries when valued at the prevailing exchange rate. Called relative PPP. Implies that the rate of depreciation of a currency must equal the difference between its inflation rate and the inflation rate in the currency to which it is being compared.


Further Suggestions

Interest rate parity line (IRP)
Purchasing power parity
Conversion parity price
Purchasing power parity exchange rate
parity ratio
Interest rate parity line (IRP)
parity
Interest rate parity theorem
Income disparity
Parity value
Disparity
Parity
Relative form of purchasing power parity
Put call parity relationship
Conversion parity
Absolute form of purchasing power parity
Interest parity
Uncovered interest parity
Debt service parity approach
Gross parity
Purchasing power parity theory
Covered interest parity
Spot futures parity theorem


 
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