target price

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Target price

In the context of takeovers, the price at which an acquirer aims to buy a target firm.
In the context of options, the price of the underlying security at which an option will become in the money.
In the context of stocks, the price that an investor hopes a stock will reach in a certain time period.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Target Price

1. In mergers and acquisitions, the purchase price of the target company.

2. The price at which an investor hopes to buy or sell a security. That is, when an investor takes a position on a security he/she hopes that the investment will become profitable. The target price is the price at which the investment becomes worth the effort and money put into it.

3. In options, the price at which a contract becomes in-the-money.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

target price

1. The price that an investor or a security analyst expects a security to achieve. Generally, when a security achieves the target price, it is time to close out a position in it.
2. The price at which an investor hopes to purchase an asset. For example, a company desiring to take over another firm may set a target price for the firm.
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.
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