pricing

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Pricing

The process of an issuer determining the appropriate price of a new issue. That is, the issuer prices when it figures out what coupon rate to promise for a bond or price at which to issue a stock. This can be complex because pricing too far in one direction means the issue will not sell while too far in the other direction raises the cost of funds too high.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

pricing

The determination of the price at which stock will sell or the yield at which bonds will sell as new issues. If the price is set too high or the yield is set too low, the issue will not sell out. If the price is set too low or the yield is set too high, the issuer will pay more than necessary in dilution or interest to sell it.
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.

pricing

the decision-making process involved in setting a PRICE for a good or service. For most products, pricing decisions cannot be made in isolation but must consider all aspects of the MARKETING MIX, prices of the firm's related products, competitors'prices, product COSTS, DEMAND and the firm's PRICING OBJECTIVES. See PRICING POLICY, PRICING METHODS, PRICE-QUALITY TRADEOFF, BYPRODUCT PRICING, PRODUCT LINE PRICING, CAPTIVE PRODUCT PRICING, OPTIONAL EXTRAS PRICING, GEOGRAPHICAL PRICING, PSYCHOLOGICAL PRICING, BUNDLED PRICES, EVERYDAY LOW PRICES, PRODUCT POSITIONING, CONSUMER SURPLUS, VALUE CREATED MODEL.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
References in periodicals archive ?
Competitoor's cloud-native, AI-driven price optimization software converts demand prediction into revenue for retailers.
* * A European grocer uses price optimization as part of its category review process.
Those consumers probably don't think that's fair -- and neither does Bob Hunter, insurance director at CFA, who said in a statement, "It is terribly unfair and entirely illegal for insurance companies to vary premiums based on whether or not [individuals] are statistically likely to shop around." In the wake of Florida's decision to ban the practice, Hunter termed the use of price optimization "price gouging," while Birny Birnbaum, executive director of the Center for Economic Justice, called the practice "Big Data run amok."
Because such factors are said to be unrelated to the risk of loss, price optimization "can result in two policyholders receiving different premium increases even though they have the same loss history and risk profile," according to the Vermont bulletin.
"Price optimization technologies also hold promise for companies that do not mark down goods with the same rhythm as apparel retailers.
Established in 2014 in Sweden, Price Edge Solutions AB has developed the dream pricing software - a cloud-based Price Optimization & Management software for enterprises, which gives them access to new pricing strategies and more flexibility than ever before.
RateGain's cloud-based software helps organizations with rate intelligence, price optimization, seamless electronic distribution and brand engagement.
"The department views price optimization as a discriminatory practice and therefore a violation of state insurance law.
One includes a battle being staged at the NAIC casualty actuarial statistical task force over whether the use of price optimization in setting rates can be considered discriminatory, said Bob Detlefsen, NAMIC vice president of public policy.
Van's Markets, a seven-store independent based in Helena, Mont., initially deployed price optimization in 2005 as a matter of self-defense.