Price Ratchet

AAA

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 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.

RELATED TERMS
  1. Economics

    A social science that studies how individuals, governments, firms ...
  2. Equity

    1. A stock or any other security representing an ownership interest. ...
  3. Full Ratchet

    An anti-dilution provision that, for any shares of common stock ...
  4. Stock

    A type of security that signifies ownership in a corporation ...
  5. Parity Price

    When the price of an asset is directly linked to another price. ...
  6. Market Value

    The price an asset would fetch in the marketplace. Market value ...
Related Articles
  1. Investing

    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's a Marketable Security?
    Active Trading

    What's a Marketable Security?

    Marketable securities are financial instruments that can be readily bought and sold in a public market. The key feature is the ease with which it can be sold and converted into cash. Usually, ...
  3. Stock Analysis

    Buyinb Facebook Stock, A Beginner's Guide

    This straightforward guide helps the novice investor feel more adept at buying a stock, such as Facebook (FB).
  4. Trading Strategies

    How do technical analysts interpret the Average Directional Index (ADI)?

    Learn what the average directional index is and why technical analysts look towards ADX indicators to measure the strength of price trends.
  5. Investing News

    Alibaba's Top Competitors

    A look at Alibaba’s top competitors to understand perceived and real competitive threats to the Chinese ecommerce giant.
  6. Investing Basics

    Analysis of Companies with high goodwill

    High goodwill as a percentage of market cap can actually be a big red flag--it potentially means the company botched a major acquisition.
  7. Investing Basics

    What Does The Dow Jones Industrial Average (DJIA) Quote Represent?

    “The Dow” is regarded as the “pulse of the stock market,” as it is one of the most quoted and followed stock market indices by investors, market professionals and media.
  8. Investing

    What are the differences between dilutive securities and antidilutive securities?

    Learn how investors and accountants apply the terms "dilutive" and "antidilutive" to securities or the exercise of security mechanisms.
  9. The Nikkei index is synonymous with Japan's economy, the third-largest in the world. Here's the easiest way to take a stake.
    Mutual Funds & ETFs

    How To Invest In The Nikkei 225

    The Nikkei index is synonymous with Japan's economy, the third-largest in the world. Here's the easiest way to take a stake.
  10. If you want to keep your finger on the pulse of the Japanese economy and stock market pay attention to the bellwether Nikkei 225.
    Investing Basics

    A Guide To Japan’s Nikkei 225 Index

    If you want to keep your finger on the pulse of the Japanese economy and stock market pay attention to the bellwether Nikkei 225.

You May Also Like

Hot Definitions
  1. Santa Claus Rally

    A surge in the price of stocks that often occurs in the week between Christmas and New Year's Day. There are numerous explanations ...
  2. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  3. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  4. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  5. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  6. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
Trading Center