Price Spread: An options strategy that involves buying and selling two options on the same security with the same expiration month, but with different exercise prices.

 

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Price Spread: An options strategy that involves buying and selling two options on the same security with the same expiration month, but with different exercise prices.

Price-Sales Ratio: Determined by dividing current stock price by revenue per share (adjusted for stock splits). Revenue per share for the P/S ratio is determined by dividing revenue for past 12 months by numbe . . . View Full Definition

Price-Earnings Ratio (P-E): The market value of a company's stock divided by net income.

Price-Specie Flow Mechanism: Adjustment mechanism under the classic gold standard allowing disturbances in the price level in one country to be wholly or partly offset by a countervailing flow of specie (gold coins) tha . . . View Full Definition

Price-To-Book Ratio: Some financial analysts use price-to-book ratios to identify stocks they consider to be overvalued or undervalued. You figure this ratio by dividing a stock's market price per share by its b . . . View Full Definition

Price-To-Cash Flow: You find a company's price-to-cash flow ratio by dividing the market price of its stock by its cash receipts minus its cash payments over a given period of time, such as a year. Some institu . . . View Full Definition

Price-Earnings Ratio: Shows the multiple of earnings at which a stock sells. Determined by dividing current stock price by current earnings per share (adjusted for stock splits). Earnings per share for the P/E ra . . . View Full Definition

Price-Book Ratio: Compares a stock's market value to the value of total assets less total liabilities (book value). Determined by dividing current stock price by common stockholder equity per share (book valu . . . View Full Definition

Price Risk: The risk that the value of a security (or a portfolio) will decline in the future. Or, a type of mortgage pipeline risk created in the production segment when loan terms are set for the borr . . . View Full Definition

Price Support: Government intervention to set an artificially high price through the use of a price floor designed to aid producers.