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basis price investment & finance definition
- The price of a security quoted in terms of its yield rather than its dollar price. Bonds are often quoted on a basis price reflecting yield to maturity since such information is of greatest importance to an investor deciding to buy or sell.
- The price selected by a specialist at which to execute an odd-lot order on an inactive stock. The large spread on inactive stocks often results in a basis price that splits the difference between the bid and ask.
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