Asset prices

Asset Prices
Assets are items that give real value to a firm or an investor. Assets can be real assets such as land, houses, machines or capital. Financial assets include money, bonds and securities.

their impact on asset prices manifests in their unexpected movements
they should represent undiversifiable influences (these are, clearly, more likely to be macroeconomic rather than firm-specific in nature) ...

(2007) "Inflation illusion, credit and asset prices". Asset Prices and Monetary Policy.
10Campbell J., Vuolteenaho T. (2004) "Inflation illusion and Stock Prices". American Economic Review Papers and Proceedings.
11Cohen R., Polk C., Vuolteenaho T.

Financial volatility stands for the movement of asset prices for a certain period of time. Volatility is often compared to a roller coaster, as the roller coaster goes up and down with high amplitude.

For modeling the behavior of certain asset prices, such as stock prices, arithmetic random walks have a number of limitations. They can take on negative values, which is an impossibility for many asset's prices.

Volatility risk refers to the potential for asset prices to fall during adverse market conditions.

revenue is directly linked to market valuations, so in the event of a major fall in asset prices revenues decline precipitately relative to costs; ...

One of the earliest and most striking applications of the concept of rational expectations is the efficient markets theory of asset prices.

This strategy relies on relative stability in asset prices, as an adverse exchange rate movement can easily wipe out the returns from the underlying interest rate differential.

It is observed in much time series data on asset prices that there are periods when variance is high and periods where variance is low.

When asset prices start to fall, mark to market accounting means that banks feel pressure to loan less, to make sure their liabilities aren't greater than their assets. (Source: FT.

For the purpose of financial risk management, the aggregate variables of interest are asset prices. Asset prices are, in turn, determined by the actions of traders.

Quality of earnings Increased earnings due to increased sales and cost controls, as compared to artificial profits created by inflation of inventory or other asset prices.

Froth - Market conditions preceding an actual market bubble where asset prices become detached from their underlying intrinsic values as demand for those assets drives their prices to unsustainable levels.

Some politicians and others responsible for financial REGULATION blame the growing use of derivatives for increasing VOLATILITY in asset PRICES, and for being a source of danger to their users.

An economic index computed by the New Zealand government that measures the change in fixed capital-asset prices in the New Zealand economy from one period to another.

Efficient Market: A market in which asset prices instantaneously reflect new information.
Enclave Guarantee: IBRD partial risk guarantee structured for export oriented foreign exchange generating commercial projects in IDA countries.

A general and marked decline in asset prices or currency rates. Opposite: Boom.
Français: Effondrement
Español: Descenso, depresión, crisis económica, baja repentina
Draft: ...

Efficient markets hypothesis - The theory that asset prices reflect all publicly available information about the value of an asset.

market in which buyers dominate trading and force financial asset prices up.
Related Terms:
Dictionary of Business Terms ...

A system of equations that describes the way prices of individual assets are determined in efficient markets, that is, in markets where information is freely available and reflected instantaneously in asset prices.

Increased earnings due to increased sales and cost controls, as compared to artificial profits created by inflation of inventory or other asset prices.
Quality option ...

A Tobin's Q of less than one suggests that the market value of the assets is less than replacement cost, making acquisitions cheaper than capex; buying cheaper than setting up from scratch. This should increase share prices and reduce asset prices, ...

Liquidity Cycle
An economic observation of the way asset prices rise or fall in relation to cyclical movements in interest rates over a business cycle.

The main impact is through the level of aggregate demand. Higher interest rates limit people's ability to spend and so reduce aggregate demand. However, there are a variety of other effects as well through expectations, asset prices and the exchange ...

In this case, deleveraging may mean selling assets at a relatively steep discount. As a result, deleveraging may lead to downward pressure on security and asset prices as more and more companies and/or individuals unwind their positions during the ...

Capital asset prices: A theory of market equilibrium under conditions of risk, Journal of Finance, 19 (3), 425-442
Stone, Bernell K.

See also: Values, Saving, Expense, Banks, Cost of capital