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Stop out price |
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Stop out priceThe lowest auction price at which Treasury bills are sold.Stop out price Similar MatchesDemand priceDemand priceThe price at which a given quantity is demanded; the demand curve viewed from the perspective of price as a function of quantity. Price earnings ratio (P/E ratio)Price earnings ratio (P/E ratio)P/E = current share price of a company divided by its earnings per shareA company with a share price of 100p and earnings per share (EPS) of 5p has a P/E ratio of 100/5 = 20.A company's P/E (also known as its multiple) shows how high its shares are priced in relation to its historical earnings. Although mathematically, it relates share price to past performance, the reality is that P/Es are more about forward expectations than the past. A high P/E indicates that the City expects the company's earnings to grow fast in the future.P/E 're-ratings' by the City can have a dramatic effect on share price. If a company regarded as a growth stock announces sharply reduced trading figures, fund managers may revise their view of the company, and decide that it doesn't justify a growth stock P/E of 20, and can only justify a more normal P/E of, say 12. If earnings were 10p share, that re-rating would suggest a change in share price from 200p to 120p.Equally, if a company announces some major technical breakthrough, or a major contract, the City may decide that its future earnings potential justifies a growth P/E, and re-rate it upwards from 12 to 20 (or equivalent figures). In which case the share price will leap.There is nothing formal about this re-rating procedure. It is simply buyers in the market pushing up the price to reflect a new perception of a company. But P/Es do tend to be comparative, in that companies in the same sector with similar prospects would normally have similar P/Es. If they don't, there is invariably a reason accounting for the difference. Average priceAverage priceA term used by the London Stock Exchange to denote that a transaction was effected at a price based on a over a given period. Bid priceBid priceThis is the quoted bid, or the highest price an investor is willing to pay to buy a security. Practically speaking, this is the available price at which an investor can sell shares of stock. Related: Ask, offer. Dirty priceDirty priceBond price including accrued interest, i.e., the price paid by the bond buyer. Further SuggestionsReference pricePrice compression Limit price Price elastic Relative price price sensitive information Depressed price Nominal price Redemption price Ceiling price Implicit price deflator Pricey Financial price risk Settlement price Price floor Settle price Exchange Delivery Settlement Price Sell price World price Spot price Iso-price curve Asked price Transfer price Aggregate exercise price Earnings price ratio |
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