Basis Price
Barron's Finance & Investment Dictionary:
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Basis Price
In general: price an investor uses to calculate capital gains when selling a stock or bond.
See also basis; Stepped-Up Basis.
Odd-lot trading: the price arbitrarily established by an exchange floor official at the end of a trading session for a buyer or seller of an odd lot when the market bid and asked prices are more than $2 apart, or if no round-lot transactions have occurred that day. The customer gets the basis price plus or minus the odd-lot differential, if any. This procedure for determining prices is rare, since most odd lots are transacted at the market bid (if a sale) or asked (if a buy) or at prices based on the next round-lot trade.
| Basis Point, Basis | |
| Basket, Basket Options |
Investopedia Financial Dictionary:
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Basis Price
Price quotation for a security expressed in terms of yield to maturity. This will usually only be quoted on fixed-income securities such as bonds.
Investopedia Says:
For example, if a bond price was quoted as 10% and this was also the yield to maturity, then the 10% would be the basis price.
Related Links:
Investing in bonds - What are they, and do they belong in your portfolio? Bond Basics Tutorial
Learn the complex concepts and calculations for trading bonds including bond pricing, yield, term structure of interest rates and duration. Advanced Bond Concepts
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Barron's Finance & Investment Dictionary
Dictionary of Finance and Investment Terms. Copyright © 2010 by Barron's Educational Series, Inc. All rights reserved.
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Mentioned in
Fair Trade Price
(in accounting)
Gain
(business term)
Cost Basis
(finance term)
Adjusted Basis
(finance term)
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