Distress Price

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Dictionary Says

Definition of 'Distress Price'

When a firm chooses to mark down the price of an item or service instead of discontinuing the product or service altogether. A distress price usually comes about in tough market conditions when the sale of a particular product or service has slowed down dramatically and the company is unable to sell enough of it to cover the fixed costs associated with doing business.      
Investopedia Says

Investopedia explains 'Distress Price'

A company will sometimes choose to mark down an item's price rather than discontinue operations completely because even at a distressed price, those revenues will help with covering some of the fixed costs associated with running the business. However, if the item can not be sold at a price greater than its variable cost of production, discontinuing the item is usually in the firm's best interests.
Search results for

'Distress Price'

  • CFA Level 1 Study Guide - Equity Investments - Using Price ...

    http://www.investopedia.com/exam-guide/cfa-level-1/equity-investments/using-price-multiples.asp
    ... and Demand; 3.3 Price Elasticity; 3.4 Elasticity of Demand; 3.5 Elasticity
    of Supply; 3.6 Marginal Benefit and Marginal Cost; 3.7 Market ...

  • 8 Signs Of A Doomed Stock Slideshow | Investopedia

    http://www.investopedia.com/slide-show/signs-doomed-stock
    ... Are Your Stocks Doomed? Few people seem to spot the early signs of a company in
    distress. ... (For more, read Looking At Interest Coverage.). 4. Share Price Decline. ...

  • Sizing Up A Career As A Ratings Analyst

    http://www.investopedia.com/articles/financialcareers/09/ratings-analyst-career.asp
    ... expectations. Such scenarios - if the drop in stock price is steep enough -
    can result in financial distress for the company. If ...

  • Commodities: Feeder Cattle | Investopedia

    http://www.investopedia.com/university/commodities/commodities7.asp
    ... Factors That Influence Feeder Cattle's Price The price of feeder cattle is influenced ...
    high in saturated fat and is thought to excessively distress the feeder ...

  • Are Your Stocks Doomed?

    http://www.investopedia.com/articles/fundamental/04/051204.asp
    ... Stocks. Few people seem to spot the early signs of a company in distress. ... Share Price
    Decline The savvy investor should also watch out for unusual share price ...

  • The Pros And Cons Of Buying Distressed Property - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1211/The-Pros-And-Cons-Of-Buying-Distressed-Property.aspx
    ... of Realtors, "all cash sales," known in the industry as "distress" sales, comprised ...
    The average selling price for those homes came in at just over $180,000 ...

  • Is Hancock Tower Sale A Death Knell For Banks?

    http://stocks.investopedia.com/stock-analysis/2009/Is-Hancock-Tower-Sale-A-Death-Knell-For-Banks-BAC-C-WFC-JPM0410.aspx
    ... on the balance sheets of America's banks, as the sale price represented a 50 ... Distress
    Signals Several banks have already started to see distress in this loan ...

  • Heavily Shorted Stocks Near Their Highs

    http://stocks.investopedia.com/stock-analysis/2011/Heavily-Shorted-Stocks-Near-Their-Highs-ADS-BCR-OZRK-TCBI-TWI-ANN-WRLD0321.aspx
    ... on a relative basis (on a price/book basis, not on price/earnings), but ... crisis and
    recession better than most, and has taken advantage of the distress of other ...

  • Rent-To-Own Real Estate Full Of Pitfalls

    http://www.investopedia.com/articles/mortgages-real-estate/08/rent-to-own.asp
    ... to any warning signs that would indicate that the seller is in financial distress. ...
    This is how you can ensure that the home purchase price is fair before ...

  • Top 8 House-Hunting Mistakes Slideshow | Investopedia

    http://www.investopedia.com/slide-show/8-house-hunting-mistakes
    ... (To learn more about how your emotions can cause financial distress, see When ... for
    less than you deserve, it's best to only look at homes in your price range. ...

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