Markup

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Markup

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.

markup

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.

Markup.

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 ?
So we must review that method before discussing how to use my formula for CVP analysis based on markup pricing.
Indeed, any measurement problem that affects similarly the cyclicality of markups for all industries in a given country or the same industry across countries can be controlled for in our setting.
While broker-dealers can charge what they like, I take issue with how these markups are frequently imposed without representatives being aware of the added costs to their clients.
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.
Thus, these variables can serve as good natural instruments for estimating markup and RTS for the Korean economy.
Table 3 presents the results of the specification that included a positive markup interaction using a dummy variable that equaled 1 if markups were positive for that service line and zero otherwise.
where ln is the natural log operator; [[mu].sub.t], (t = 1984, ..., 2007) is the estimated markups obtained by the Hall-Roeger time-series model (Eq.
markup = [[alpha].sub.1] ln(OG) + [[alpha].sub.2]ESM + [[alpha].sub.3]EMU + [[alpha].sub.4]NAFTA + [[alpha].sub.5] WTO + [[alpha].sub.6] OPEN (15)
In addition to continuing to extend stand-alone viewer capabilities, the company said it plans to integrate content viewing and markup functionality into upcoming versions of the Open Text ECM Suite.
The markup is designed to pass on to flour millers the effects of sharp rises in wheat and other crop prices on international markets and higher shipping costs due to the crude oil price surge, they said.
The prices of these products cannot exceed government-designated markups from either domestic factory prices or so-called "import supply prices."
However, there is a common assumption implicitly embedded in these studies: Entry and exit of firms do not affect the intensity of competition and thus the markups of incumbent firms.