Limit price

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Limit price

Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Limit Price

1. The price above or below which one is willing or not willing to buy or sell a security. For example, one may wish to buy a stock if the price drops to $20 per share, hold if the price goes above $40, or sell at $30. Both cases represent limit prices. An investor tells his/her broker any applicable limit prices, by which the broker is required to abide.

2. A price of a product, especially a mass-produced product, sufficiently low so as to discourage new entry into that product's market. Monopolists set a limit price by increasing production to more than they otherwise need, which requires potential competitors to spend a greater amount in production in order to match the price. This renders competition unprofitable and maintains the monopolist's control of the market. The practice is illegal in most countries. See also: Antitrust.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

limit price

The price specified by an investor for a limit order. With a limit order to buy, the price represents the highest price the investor will pay. The price of a limit order to sell represents the lowest price the investor will accept.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Limit price.

A limit price is the specific price at which you tell your stockbroker to execute a buy or sell order on a particular security.

If the transaction can be completed at that price, it goes through, but if that price is not available, no purchase or sale takes place.

The advantage of a limit order is that you won't pay more or sell for less than you want. Since your broker is monitoring the price, it is more likely that the trade will take place at the limit price than if you waited until the security reached that price to place your order.

The potential drawback of setting a limit price, which is also known as giving a limit order, is that the transaction may not take place in a fast market if the price of the security moves up or down quickly, passing the limit price.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
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The Association considers necessary to take measures for ensuring supply those volumes that are declared by retail radiators in accordance with demands for the limited volume of oil products, and to enter state regulation of the limit prices of fuels and lubricants for wholesale suppliers with marginality establishment between wholesale and retail price within 30%.
The exchange found that two dealers at San-ei's securities department placed buy orders at limit prices at which they did not intend to execute to cause price moves in TSE-listed stocks, that would be to the advantage of its proprietary trading operation.
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The prices of electricity to be exported to Kazakhstan are dictated by Kazakh energy companies, not Kyrgyzstan, Kutbidin Najimidinov, tender commission chair and chief of electricity export division of Electric Stations, said in an interview with Business AKIpress.Kazakhstan has set the limit prices for electricity purchase and formalized them in legislation, he explained.