Priced out

(redirected from Discounted by the Market)

Priced out

The market has already incorporated information, such as a low dividend, into the price of a stock.

Priced Out

In securities, describing a situation in which the market has already incorporated expected information into the price of a stock. That is, if a company's earnings are large for a particular quarter, it may leak the information so that the stock is priced out. That way, when the information is actually announced, it will not cause a sudden jump in price, which might suggest volatility. For this reason, the Federal Reserve issues statements indicating what policy changes it might make before it makes them, allowing the markets to price out the information. See also: Efficient markets theory.
References in periodicals archive ?
All the negative news was discounted by the market. The drop in SBP reserves by 3.22pc to $7.3bn and Fitch Ratings downgrading Pakistan's default rating to B- from B failed to cause a stir amongst investors.
MANILA, Philippines The Bangko Sentral ng Pilipinas (BSP) said the possible interest rate hike by the US Federal Reserve this week would have muted impact on the financial markets as this has already been discounted by the market. "That has been factored already by the market.
The significant miss on net income can be explained by the low base due to seasonality issues and so we think it will be discounted by the market. Overall, the FY12 results are solid, with strong growth across the board.
As this is not fully discounted by the market, it makes more sense to extend maturities in euro-denominated bonds.
rate cut, which was widely anticipated, has already been largely discounted by the market.
Another dealer said that although the interest rate hike has already been discounted by the market, hints that a further rise could be expected in the future battered investor confidence.