Sentences with phrase «market price of the asset when»

The strike price is usually higher than the current market price of the asset when it is first traded but is usually valid for an extended period of time; and some warrants such as MINIs or perpetual warrants have no expiry dates.

Not exact matches

Since the fundamental value of an asset in a financial market is an aggregation of the stochastic stream of future dividends, trading at prices higher than the fundamental value is only profitable when there is a widespread belief that other traders will continue to buy at prices even further away from fundamental values.
This type of analysis when applied to binary options, concentrates on the relationship between the prices of two assets in various markets, both of which on average move in the same direction.
«[Crypto values] went too high, too fast... at the time I urged caution, saying an asset that goes almost vertically up should typically raise alarm bells for investors... Arguable, even before the frenzied peak in December, when the price of one Bitcoin reached an all time high of more than $ 19,000, the market was beginning to become frothy and overheated.»
-- FOMC minutes show uncertainty and concern about markets are affecting officials» decision - making — Officials were cautious when evaluating market conditions and the «damaging effects on the economy» — Worry about «potential buildup of financial imbalances» and a sharp reversal in asset prices» — Members seem oblivious to impact of inflation on households and savings — Physical gold and silver remain the only assets for real diversification and safety
When it comes to binary options trading you only have to correctly choose whether the market of a specific asset will rise or fall; binary options trading allows you to make a profit when asset prices move in either directWhen it comes to binary options trading you only have to correctly choose whether the market of a specific asset will rise or fall; binary options trading allows you to make a profit when asset prices move in either directwhen asset prices move in either direction.
The joint venture will take up closed - ended municipal - bond funds in the next year or so that when the predicted bond market collapse comes, it will drive fund prices down to as little as 40 % of net asset value.
The strategy of Value investing is to buy an asset for less than it is worth and benefit when the market corrects the pricing mistake.
When the price hits a support level there are usually more buyers than sellers in the market thus increasing the price of the asset.
On the other hand, when the consideration is for something other than money, the tax base is calculated by the market price of the asset or service.
Numerous traders need a demo account to familiarize with the trading platform, to experiment a few trading strategies, to perceive how prices act in this present reality and to test how their own mental trading theories work while they are under pressure to hit the right choice if the market prices of an asset hit the target or when the time lapses.
«When people do try to measure investment risk, they typically assess the historic volatility of an investment compared to that of the overall market (known as beta), which derives from capital asset pricing theory.
Weather can have a negligible effect on pricing movement in the market but that factor should be the least of your concerns when trying to make asset predictions of your own.
A bear market is when the price of an asset class declines pretty substantially over time which most analysts announce a bear market when prices have fallen 20 % or more.
While the reasonable course of action when markets are correcting is not panicking and staying the course, now may be the time to revisit your asset allocation in light of your reaction to falling stock prices.
Gold is often viewed as a safe haven asset as it has preserved its value in real terms through hundreds of years of history, but this leads to its market price often becoming overly speculative at times when people are worried about inflation which can cause its spot price to fluctuate wildly.
Since the book value of stocks doesn't change that often (because it represents the price the company sold it for, not the current value on the stock market, and would therefore only change when there were new share issues), almost all changes in total assets or in total liabilities are reflected in Retained Earnings.
Juicy Excerpt: I think that the biggest cause of the problem is an unfortunate marketing reality: there's generally more money to be made selling stocks than there is to be made selling the safe asset classes that investors should be buying into when stock prices...
An important distinction is that the price of all NextShares trades equals the fund's next end - of - day net asset value per share (NAV), plus or minus a trading cost (premium / discount) determined in the market when the order executes.
Although it is expected that the market price of an ETF share typically will approximate its net asset value (NAV), there may be times when the market price and the NAV differ significantly.
ASC 820 «Fair Value Measurements and Disclosures» defines fair value as the price that would be received upon the sale of an asset or paid upon the transfer of a liability (i.e., the «exit price») in an orderly transaction between market participants at the measurement date and establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.»
Schapiro and other advocates of floating net asset values argue that fixed share prices create the illusion that money market funds are risk - free, as good as cash, when this is not the case.
There is no way to know exactly when markets would cease to be efficient in a way that could be exploited consistently, but Eugene Fama, the guy that introduced the idea of market efficiency, explain in a 2005 paper Disagreement, Tastes, and Asset Prices that it depends on who turns to passive investing.
Options contracts are priced solely by the trading price of the underlying asset, so even if your multiple account trading could only at best break even when you sell your final holdings (basically resetting the price to where it was because you started distorting it), this is fine because your real trade is in the options market.
Closed - end mutual funds issue a fixed number of shares, are usually priced by the markets at a discount or premium to net asset value, and trade normally when the markets are open.
Most of the time when bitcoin (BTC) markets dip, nearly every other digital asset's price will be correlated to the drop in value.
As for what that means for those considering how to handle their holdings, it's worth noting that such market shifts are common when it comes to the price determination of a new asset.
, the move comes at a time when the market continues to seek direction following China's decision to ban initial coin offerings (ICO), a use case credited as helping the price of the asset climb over 3,000 percent this year.
Prior to this year, the last time the agency auctioned its seized BTC assets was back in August 2016 when 2700 BTC coins were reportedly sold off with an estimated price of $ 1.6 million, as per the market price then.
Adam Smith, the grandfather of modern economics, said when an asset is undervalued, the «invisible hand of the market» corrects the pricing to fair market value.
«Although prices of Class A assets in the U.S. are high and yields are lower, the promise of reliable returns leads to sustained interest in the sector overall, especially when compared to other global markets,» noted said Greg Williams, national sector leader for KPMG's Building, Construction & Real Estate division.
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