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Price value of a basis point (PVBP) |
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Definition of Price value of a basis point (PVBP)Price value of a basis point (PVBP)Also called the dollar value of a basis point, a measure of the change in
Related Terms:Account ValueThe sum of all the interest options in your policy, including interest. accrual-basis accountingWell, frankly, accrual is not a good descriptive Accumulated ValueAn amount of money invested plus the interest earned on that money. Adjusted present value (APV)The net present value analysis of an asset if financed solely by equity Agency basisA means of compensating the broker of a program trade solely on the basis of commission approximated net realizable value at split-off allocationa method of allocating joint cost to joint products using a Arm's length priceThe price at which a willing buyer and a willing unrelated seller would freely agree to Ask priceA dealer's price to sell a security; also called the offer price. Bank discount basisA convention used for quoting bids and offers for treasury bills in terms of annualized Bargain-purchase-price optionGives the lessee the option to purchase the asset at a price below fair market BasisRegarding a futures contract, the difference between the cash price and the futures price observed in the Basis pointIn the bond market, the smallest measure used for quoting yields is a basis point. Each percentage Basis PointOne one-hundredth of one percent Basis pointOne hundredth of one percentage point, or 0.0001. Basis PointOne one-hundredth of a percentage point, used to express variations in yields. For example, the difference between 5.36 percent and 5.38 percent is 2 basis points. Basis priceprice expressed in terms of yield to maturity or annual rate of return. Basis riskThe uncertainty about the basis at the time a hedge may be lifted. Hedging substitutes basis risk for Benefit ValueThe amount of cash payable on a benefit. Bid priceThis is the quoted bid, or the highest price an investor is willing to pay to buy a security. Practically Bond-equivalent basisThe method used for computing the bond-equivalent yield. Bond pointsA conventional unit of measure for bond prices set at $10 and equivalent to 1% of the $100 face Bond valueWith respect to convertible bonds, the value the security would have if it were not convertible Book valueA company's book value is its total assets minus intangible assets and liabilities, such as debt. A BOOK VALUEAn asset’s cost basis minus accumulated depreciation. Book ValueThe value of an asset as carried on the balance sheet of a Book valueAn asset’s original cost, less any depreciation that has been subsequently incurred. book valueNet worth of the firm’s assets or liabilities according book value and book value per shareGenerally speaking, these terms BOOK VALUE OF COMMON STOCKThe theoretical amount per share that each stockholder would receive if a company’s assets were sold on the balance sheet’s date. Book value equals: Book value per shareThe ratio of stockholder equity to the average number of common shares. Book value Book Value per ShareThe book value of a company divided by the number of shares break-even point (BEP)the level of activity, in units or dollars, at which total revenues equal total costs Breakeven pointThe point at which total costs equal total revenue, i.e. where there is neither a profit nor a loss. breakeven pointThe annual sales volume level at which total contribution Breakeven pointThe sales level at which a company, division, or product line makes a business-value-added activityan activity that is necessary for the operation of the business but for which a customer would not want to pay Call priceThe price, specified at issuance, at which the issuer of a bond may retire part of the bond at a Call priceThe price for which a bond can be repaid before maturity under a call provision. CAPITAL IN EXCESS OF PAR VALUEWhat a company collected when it sold stock for more than the par value per share. Carrying valueBook value. Cash-flow break-even pointThe point below which the firm will need either to obtain additional financing Cash-surrender valueAn amount the insurance company will pay if the policyholder ends a whole life Cash Surrender ValueThis is the amount available to the owner of a life insurance policy upon voluntary termination of the policy before it becomes payable by the death of the life insured. This does not apply to term insurance but only to those policies which have reduced paid up values and cash surrender values. A cash surrender in lieu of death benefit usually has tax implications. Cash Surrender ValueBenefit that entitles a policy owner to an amount of money upon cancellation of a policy. Cash value added (CVA)A method of investment appraisal that calculates the ratio of the net present value of an Clean priceBond price excluding accrued interest. Consumer Price Index (CPI)The CPI, as it is called, measures the prices of consumer goods and services and is a Consumer Price Index (CPI)An index calculated by tracking the cost of a typical bundle of consumer goods and services over time. It is commonly used to measure inflation. Conversion parity priceRelated:Market conversion price Conversion valueAlso called parity value, the value of a convertible security if it is converted immediately. Convertible priceThe contractually specified price per share at which a convertible security can be Cost basisAn asset’s purchase price, plus costs associated with the purchase, like installation fees, taxes, etc. Delivery pointsThose points designated by futures exchanges at which the financial instrument or Delivery priceThe price fixed by the Clearing house at which deliveries on futures are in invoiced; also the Devaluation A decrease in the spot price of the currency
Dirty priceBond price including accrued interest, i.e., the price paid by the bond buyer. Discounted basisSelling something on a discounted basis is selling below what its value will be at maturity, Dollar price of a bondPercentage of face value at which a bond is quoted. Economic Value Added (EVA)Operating profit, adjusted to remove distortions caused by certain accounting rules, less a charge economic value added (EVA)a measure of the extent to which income exceeds the dollar cost of capital; calculated economic value added (EVA)Term used by the consulting firm Stern Stewart for profit remaining after deduction of the cost Effective call priceThe strike price in an optional redemption provision plus the accrued interest to the Equilibrium market price of riskThe slope of the capital market line (CML). Since the CML represents the Escalating Price OptionA nonqualified stock option that uses a sliding scale for Exercise priceThe price at which the underlying future or options contract may be bought or sold. Exercise priceThe price set for buying an asset (call) or selling an asset (put). Exercise valueThe amount of advantage over a current market transaction provided by an in-the-money Exit valueThe value that an asset is expected to have at the time it is sold at a predetermined Expected valueThe weighted average of a probability distribution. Expected ValueThe value of the possible outcomes of a variable weighted by the Expected value of perfect informationThe expected value if the future uncertain outcomes could be known Extraordinary positive valueA positive net present value. Face valueSee: Par value. Face ValueThe nominal value of a security. Also called the par value. Face valueThe maturity value of a security. Also known as par value, face valuePayment at the maturity of the bond. Also called par value or maturity value. Face ValueThe payoff value of a bond upon maturity. Also called par value. See principal. Face ValueThe nominal value which appears on the face of a document recording an entitlement, generally an amount of money that has to be repaid on the maturity of a debt instrument. Fair market priceAmount at which an asset would change hands between two parties, both having Fair market valueThe price that an asset or service will fetch on the open market. Fair Market ValueThe highest price available, expressed in terms of cash, in an open and unrestricted market between informed, prudent parties acting at arm's length and under no compulsion to transact. Fair priceThe equilibrium price for futures contracts. Also called the theoretical futures price, which equals Fair price provisionSee:appraisal rights. Fair ValueThe amount at which an asset could be purchased or sold or a liability incurred or Firm's net value of debtTotal firm value minus total firm debt. Fixed price basisAn offering of securities at a fixed price. Fixed-price tender offerA one-time offer to purchase a stated number of shares at a stated fixed price, Flat price (also clean price)The quoted newspaper price of a bond that does not include accrued interest. Flat price riskTaking a position either long or short that does not involve spreading. Flow-through basisAn account for the investment credit to show all income statement benefits of the credit Formula basisA method of selling a new issue of common stock in which the SEC declares the registration Free-on-Board (FOB) Shipping PointA shipping arrangement agreed to between buyer and Full priceAlso called dirty price, the price of a bond including accrued interest. Related: flat price. Future valueThe amount of cash at a specified date in the future that is equivalent in value to a specified Future ValueThe amount a given payment, or series of payments, will be worth future valuethe amount to which one or more sums of Future valueThe value that a sum of money (the present value) earning future valueAmount to which an investment will grow after earning interest. Future ValueThe amount to which a payment or series of payments will grow by a given future date when compounded by a given interest rate. FVIF future value interest factor.
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