Investopedia

Continue to Site »

Price Ratchet

Filed Under »
Dictionary Says

Definition of 'Price Ratchet'

A trigger that increases or decreases a price of a share/asset by a certain amount. If you ratchet up the price of a stock, your actions are somehow causing the price of the stock to rise.
Investopedia Says

Investopedia explains 'Price Ratchet'

For example, many events that happen around the world, such as natural disasters or conflicts in the Middle East, can affect the gas prices. When a natural disaster or a new conflict causes an increase in gas prices, it is considered a ratchet.

Articles Of Interest

  1.

    What causes a significant move in the stock market?

    There is a nearly infinite number of factors that can cause the stock market to move significantly in one direction or another. This can include such things as economic data, geopolitical events ...

  2. What is a stock ticker?

    A stock ticker is a report of the price for certain securities, updated continuously throughout the trading session by the various stock exchanges. A "tick" is any change in price, whether that ...

  3. Institutional Investors

    Learn more about the advantages that financial institutions enjoy when buying and selling securities.

  4. Weighted Average

    Learn how to weigh the relative importances of data points in a calculated average.

  5. Bid-Ask Spread

    Find out more about this frequently referenced, but often misunderstood, term used to describe the price at which a stock is bought or sold at.

  6. Why Is Liquidity Important?

    Learn more on why liquidity is important to consider when examining a stock, next to its share price.

  7. Understanding The Ticker Tape

    We explain the meaning and use of that reel of symbols whizzing across your TV or computer screen.

  8. Whisper Numbers: Should You Listen?

    These unofficial forecasts hold the potential for insider insight - and investment risk.

  9. Translating Ticker Talk

    Stock tickers can say a lot about a company in just a few letters. Find out how to read them.

  10. The Dow Jones Industrial Average

    Learn how this price-weighted index performs and the ways to interpret its movements.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  2. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  3. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  4. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  5. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  6. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.
Trading Center