Related Words

Fee-Based Pricing: Compensation to a travel agency by corporate clients from commission revenues generated by the corporations business.

Multiple Component Pricing: The practice of valuing farm milk according to the value of its protein, fat, and mineral content. This practice has been adopted by many regions for federal milk marketing orders. Historica . . . View Full Definition

Pricing Efficiency: Also called external efficiency; a market characteristic that prices at all times fully reflect all available information that is relevant to the valuation of securities.

Job Pricing: The process of determining pay rates for jobs within the organization by analyzing industry or regional salary survey data in order to establish appropriate job pay rates.

Garman-Kohlhagen Option Pricing Model: Rising stock prices and increased market activity in an entire sector caused by a psychology change stemming from a major takeover involving two companies in the sector. Speculators feel oth . . . View Full Definition

Forward Pricing: A currency trades at a forward premium when its forward price is higher than its spot price.

Regulatory Pricing Risk: Risk that arises when insurance companies are subject to regulation of the premium rates that can they charge.

Two-State Option Pricing Model: A market in which both bid and asked prices, good for the standard unit of trading, are quoted. When customers or market makers are lined up on both sides (buy and sell) of a stock.

Yield Curve Option-Pricing Models: The graphic depiction of the relationship between the yield on bonds of the same credit quality but different maturities. Related: Term structure of interest rates. Harvey (1991) finds that . . . View Full Definition

Value-Based Pricing: Packers are increasingly using this method of determining how much to pay cattle and hog producers for animals. Rather than simply paying a fixed rate based on the weight of the animals, val . . . View Full Definition