Price Creep

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Dictionary Says

Definition of 'Price Creep'

The gradual and steady increase in the valuation or market price of an asset. Price creep refers to a situation in which either an individual or a group of individuals gradually lessen its reservations about paying higher prices for a given asset.
Investopedia Says

Investopedia explains 'Price Creep'

Everyday life provides commonplace examples of price creep in action. Rates charged at movie theaters or for a casual dinner out at a restaurant can be subject to price creep, especially in high-profile urban areas. Over time, customers become accustomed to paying higher prices for the good or service in question; as a result, prices at most business tend to keep rising year after year, in excess of the rate of inflation.

In the financial markets, price creep can be seen where investors gradually give greater valuation to a financial security. For example, at first, an investor may deem a given stock to be worth $10 per share. But after following the company for a while and watching the stock's price trend upward, the investor may eventually relent and decide that $15 per share is a fair price for the stock, even though that person initially deemed $10 to be a fair market value.
Search results for

'Price Creep'

  • What To Do About Gold Now - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1010/What-To-Do-About-Gold-Now.aspx
    ... This means that when rates begin to creep back up, the price of gold will likely
    start coming down, as investors move to higher interest paying investments. ...

  • Credit Crisis: What Caused The Crisis? | Investopedia

    http://www.investopedia.com/university/credit-crisis/credit-crisis4.asp
    ... Soon, most risky assets were dropping rapidly in price and panic began to
    creep into the marketplace. The credit crisis had begun. ...

  • Is Your Commute Worth It? - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0711/Is-Your-Commute-Worth-It.aspx
    ... Unfortunately, there are several not-so-obvious expenses that can creep up on a
    commuter, many of which are much more costly than the price of living within ...

  • Value Investing: Managing The Risks In Value Investing ...

    http://www.investopedia.com/university/value-investing/value-investing6.asp
    ... can take a detached, critical standpoint when evaluating numbers, fear and excitement
    creep in when ... the stock, you may be tempted to sell it if the price falls ...

  • Sell Growth Stocks The IBD Way

    http://www.investopedia.com/articles/stocks/06/SellRulesIBD.asp
    ... When a Stock Makes New Highs on Low Volume A winning stock's price run is ... Supply
    is beginning to creep up on demand and eventually more people are willing to ...

  • 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
    ... to get a better interest rate, and that low rate will keep the price of your ... Economists
    say that home prices are starting to creep back up again, and after a ...

  • Exploration And Production Industry Sees Cost Inflation

    http://stocks.investopedia.com/stock-analysis/2010/Exploration-And-Production-Industry-Sees-Cost-Inflation-EOG-CRK-PXD-SII0212.aspx
    ... The company is hoping that the increased drilling and completion efficiencies in
    unconventional resource plays will offset part of the cost creep. ...

  • Oil Service Cost Increases Continue

    http://stocks.investopedia.com/stock-analysis/2010/Oil-Service-Cost-Increases-Continue-CLR-XEC-EP-EQT-FST0601.aspx
    ... production industry is continuing to see oil service costs creep higher as ... The company
    also reported the most price pressure involved stimulation services, and ...

  • China's Oil Sands Ambitions

    http://stocks.investopedia.com/stock-analysis/2009/Chinas-Oil-Sands-Ambitions-PTR-SU-CNQ-BQI-SNP-TOT-TCK0918.aspx
    ... Mining bitumen is costly and the current oil price environment has caused many players
    to cash out. However, as oil begins its creep upward once again the true ...

  • 4 Misconceptions About Free Markets

    http://www.investopedia.com/articles/economics/10/free-market-misconceptions.asp
    ... command a higher price and make more profit, until the price of other ... The elimination
    of bracket creep lessens this for individuals, when increases in income ...

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