Purchase Price

The price that an investor pays for a security. This price is important as it is the main component in calculating the returns achieved by the investor.

Essentially, it can be thought of as the price that is paid for anything that is bought.

Investopedia Says:
For example, if an investor buys Ford stock at $15, then this would be the purchase price. When looking at the return on the investment, the investor would compare the purchase price of $15 to the price the investment was sold at or the current market price for Ford.

Purchase price can also refer to the price that a company pays for an item, such as another company. For example, if Ford bought Kia for $3.5 billion, this would be Ford's purchase price.

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Cost of an Annuity. Annuities are often paid for in a lump sum rather than annual or other periodic payments. This sum, which guarantees an income, usually for life, is called the purchase price rather than the Premium, which is generally associated with payments for insurance.

The dollar amount paid for a property. The amount stated in the Sales Contract unadjusted for Financing, Concessions or Seller-Paid Closing Costs.
Example: Sally bought a home for $200,000. The seller paid most of the closing costs, and she was given $5,000 because the furnace needed replacing. The purchase price, however, was $200,000.