purchase price


Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Encyclopedia.

Price

The value of a thing with real or perceived worth. Price represents the amount of value the market has assigned, fairly or unfairly, to a good or service. Normally, prices are expressed in terms of money, but practices such as countertrade and PIK securities indicate that prices may be expressed in goods: "four chickens for two sheep." Price is a necessary component of trade.

Prices tend to be regulated by the law of supply and demand; that is, a price of a good or service increases with smaller supply and/or greater demand. A corollary to this is the idea that commoditization drives prices down because it increases supply (sometimes vastly) while leaving demand the same. Prices likewise rise when the value of money declines. Governments can and have controlled the prices of certain goods and services by subsidy or decree. This is usually an anti-inflationary measure and tends to distort, rather than eliminate, the law of supply and demand. It is thus not generally sustainable as a mechanism for controlling price.

purchase price

The contractually agreed upon price for a property, before credits, adjustments, or concessions.

References in periodicals archive ?
However, based on the evidence presented by both Rey and Mon, it appears that Mon never paid to Rey, and Rey never received from Mon the purchase price.
* Expected purchase price: This is where sellers have been affected the most.
However, if the dividend amount approved at the 77th ordinary shareholders' meeting of Pentax exceeds 7 Yen per share, the purchase price for such bonds will be determined by dividing the issue price of each bond (100.5 percent of 1,000,000 Yen, which is the face value of each bond) by 540 Yen (the convertible price) and multiplying by the purchase price of common stock (in the event that the result is not a whole number,, the purchase price will be rounded to the nearest Yen).
In these cases, the purchase price is a percentage, paid over a period of years, of revenue from retained clients.
Most post-closing purchase price adjustments involve financial calculations, the interpretation of generally accepted accounting principles (GAAP), financial statement analysis, the analysis of financial concepts, or the analysis of changes between the reference financials and the closing date financials.
If the merger results are neutral or there is an increase in earnings per share, then the proposed purchase price is within an acceptable range for the buyer.
If the entire purchase price could be allocated to goodwill (1), there would be no financial expense to reduce future earnings.
Although the fair value of the acquired firm's tangible assets was only $300 million, you convinced your board that an $800 million purchase price was reasonable, given the target firm's proprietary technology, sales growth and leading market position.
The purchase price is $400 for ARMA members and nonmembers.
Term loans up to 100 per cent of the purchase price of a new building are usually available, provided the value of the premises and the owner's equity in the assets of the business exceed the purchase price.
The result of the October survey by the FHFB (formerly done by the Federal Home Loan Bank Board) provides the basis for calculating the statutory conventional mortgage limits for Freddie Mac and Fannie Mae mortgage purchases of one- to four-family residential loans (i.e., "conforming loan limits.") The FHFB surveys the purchase price reported on conventional loans closed in the first five days of the month by commercial banks, savings and loan associations, savings banks and mortgage companies responding to the FHFB survey.
BRP announced that it has taken up and paid for 6,342,494 subordinate voting shares at a price of C$47.30 per Share under BRP's substantial issuer bid to purchase for cancellation a number of its Shares for an aggregate purchase price not to exceed C$300M.