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Related to Markup: markdown


1. The additional price one pays when one buys a security from a broker-dealer. That is, when one buys a security, one pays the broker-dealer an extra percentage or a flat fee as commission. This markup forms the bulk of the broker-dealer's income.

2. See: Spread.

3. The extra amount a retailer charges a customer for a good over and above what it paid the wholesaler. For example, if one pays Wal-Mart $20 for a toaster, and Wal-Mart bought it from the manufacturer for $15, the markup is $5.


1. An upward revaluation of a security by a dealer because of a rise in the security's market price. For example, a dealer may decide that a markup on a security issue held in inventory is appropriate because of a rising stock market. Compare markdown.
2. See spread.
3. The difference between the price charged by a dealer to a retail customer and the prevailing price at which the same security is being offered by market makers. Compare markdown.


When you buy securities from a broker-dealer or market maker, you pay a markup. The markup is either a percentage of the selling price or a flat fee, over and above the amount it cost the broker-dealer to purchase the security.

The amount of this markup, or spread, is the broker-dealer's profit and depends in part on the demand for that security or others like it.

For example, if investors are buying up certain types of bonds, a broker-dealer may increase the markup for bonds in that category.

You might say that the broker-dealer acquires the security at wholesale price and sells it to you at retail price. The difference is the markup.

If the markup doesn't appear on the confirmation statement, you can ask the broker-dealer about the markup amount. Or you can compare the prices that different broker-dealers quote for the same security or the price being quoted for the security on the Internet. The differences in price generally reflect the differences in markups.

References in periodicals archive ?
The Text Encoding Initiative is a program aimed at developing standards for the markup of scholarly information in SGML; the recently published guidelines (Sperberg-McQueen & Burnard, 1994) represent the culmination of this effort in a formal model for marking up scholarly information.
Punctuational markup consists of the use of a closed set of marks to provide primarily syntactic information about written utterances.
He said that State Bank of Pakistan should aware of the fact that Pakistani products could not compete with the other countries until and unless input cost was brought down and a realistic cut in markup rate is much needed.
The result of this plethora of markup schemes has been described as chaos (Burnard, 1988).
This formula emphasizes the fact that the profit-maximizing markup depends on cost as well as on demand conditions and will vary as these conditions change, just as empirical studies have shown.
This version of FXML Guide is released as a developer edition featuring minimal illustrations but more than 75 markup snippets for use by developers and others familiar with Java, JavaFX and markup in general.
Islamabad -- Despite passing over the period of one month of federal budget announcement, the Ministry of Finance has failed to issue notification regarding the decrease in markup of 9.
A CVP formula based on markup pricing can provide a practical solution for first-time retail entrepreneurs if information is available on the markup percentage for each product category and the estimated proportion of sales per category.
In it, consumers' reactions are compared to being taken advantage of in a sales transaction to how car buyers feel when they're victims of a rate markup.
More recently, Connor and Peterson (1992) specified the determinants of markup for various U.
The administration should send up the [FTA] bills right after that non-markup, and we would move right to the floor in July after our formal markup," Brady said.