PRICE

price. The amount of money or other consideration asked for or given in exchange for something else; the cost at which something is bought or sold. [Cases: Contracts 229(1); Sales 74.1. C.J.S. Contracts § 379; Sales § 94–96.]

agreed price. The price for a sale, esp. of goods, arrived at by mutual agreement. Cf. open price. [Cases: Sales 75.]

arm’s-length price. The price at which two unrelated, unaffiliated, and nondesperate parties would freely agree to do business. See arm’s-length transaction under TRANSACTION; fair market value under VALUE.

asked price. The lowest price at which a seller is willing to sell a security at a given time. See SPREAD(2).

asking price. The price at which a seller lists property for sale, often implying a willingness to sell for less. — Also termed ask price; offering price.

at-the-market price. A retail price that store owners in the same vicinity generally charge.

bid price. The highest price that a prospective buyer is willing to pay for a security at a given time. See SPREAD(2).

call price. 1. The price at which a bond may be retired before its maturity. [Cases: Corporations 468.1.] 2. See strike price.

ceiling price. 1. The highest price at which a buyer is willing to buy. 2. The highest price allowed by a government agency or by some other regulatory institution. [Cases: War and National Emergency 108.]

closing price. The price of a security at the end of a given trading day. — Also termed close.

exercise price. See strike price.

ex-works price. The price of goods as they leave the factory. See EX WORKS.

fixed price. A price that is agreed upon by a wholesaler and a retailer for the later sale or resale of an item. • Agreements to fix prices are generally prohibited by state and federal statutes. floor price. The lowest price at which a seller is willing to sell.

liquidation price. A price that is paid for property sold to liquidate a debt. • Liquidation price is usu. below market price. — Also termed liquidation value.

list price. A published or advertised price of goods; retail price.

market price. The prevailing price at which something is sold in a specific market. See fair market value under VALUE(2).

mean trading price. Securities. The average of the daily trading price of a security determined at the close of the market each day during a 90-day period.

net price. The price of something, after deducting cash discounts.

offering price. See asking price.

open price. The price for a sale, esp. of goods, that has not been settled at the time of a sale’s conclusion. UCC § 2-305. Cf. agreed price. [Cases: Sales 78. C.J.S. Sales § 94.]

predatory price. See PREDATORY PRICING.

put price. See strike price.

redemption price. 1. The price of a bond that has not reached maturity, purchased at the issuer’s option. 2. The price of shares when a mutual-fund shareholder sells shares back to the fund. — Also termed liquidating price; repurchase price. [Cases: Corporations 468.1.]

reserve price. In an auction, the amount that a seller of goods stipulates as the lowest acceptable offer. • The reserve price may or may not be announced. See WITH RESERVE; WITHOUT RESERVE.

sales price. The total amount for which property is sold, often including the costs of any services that are a part of the sale. • Under sales-tax statutes, the amount is typically valued in money even if the value is not received in money. — Also termed selling price.

spot price. The amount for which a commodity is sold in a spot market.

strike price. Securities. The price for which a security will be bought or sold under an option contract if the option is exercised. — Also termed striking price; exercise price; call price; put price. See OPTION.

subscription price. See SUBSCRIPTION PRICE.

suggested retail price. The sales price recommended to a retailer by a manufacturer of the support price. A minimum price set by the federal government for a particular agricultural commodity. [Cases: Agriculture 3.5.]

target price. A price set by the federal government for particular agricultural commodities. • If the market price falls below the target price, farmers receive a subsidy from the government for the difference. [Cases: Agriculture 3.5.]

trade price. The price at which a manufacturer or wholesaler sells to others in the same business or industry.

transfer price. The price charged by one segment of an organization for a product or service supplied to another segment of the same organization; esp., the charge assigned to an exchange of goods or services between a corporation’s organizational units.

unit price. A price of a food product expressed in a well-known measure such as ounces or upset price. The lowest amount that a seller is willing to accept for property or goods sold at auction. [Cases: Auctions and Auctioneers 10. C.J.S. Auctions and Auctioneers §§ 21–22.]

wholesale price. The price that a retailer pays for goods purchased (usu. in bulk) from a wholesaler for resale to consumers at a higher price.

[Blacks Law 8th]