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Profit

• A general term that normally means sales revenue minus expenses over a defined period of time

 
 Embedded terms in definition
 Expenses
Sales
 
 Referenced Terms
 Arbitrage: The simultaneous buying and selling of a security at two different prices in two different markets, resulting in Profits without risk. Perfectly efficient markets present no arbitrage opportunities. Perfectly efficient markets seldom exist.Strictly defined, buying something where it is cheap and selling it where it is dear; for example, a bank buys 3-month CD money in the U.S. market and sells 3-month money at a higher rate in the Eurodollar market. In the money market, often refers: (1) to a situation in which a trader buys one security and sells a similar security in the expectation that the spread in yields between the two instruments will narrow or widen to his Profit, (2) to a swap between two similar issues based on an anticipated change in yield spreads, and (3) to situations where a higher return (or lower cost) can be achieved in the money market for one currency by utilizing another currency and swapping it on a fully hedged basis through the foreign-exchange market.Is a form of trading which attempts to Profit by discrepancies in price due to location, funding, volatility, communications, response to information, or other differences. Typically, the price differences are small and only the quickest, most cost efficient or funding efficient parties participate. Compare with Risk Arbitrage.

 Arbitrage: The simultaneous buying and selling of a security at two different prices in two different markets, resulting in Profits without risk. Perfectly efficient markets present no arbitrage opportunities. Perfectly efficient markets seldom exist.Strictly defined, buying something where it is cheap and selling it where it is dear; for example, a bank buys 3-month CD money in the U.S. market and sells 3-month money at a higher rate in the Eurodollar market. In the money market, often refers: (1) to a situation in which a trader buys one security and sells a similar security in the expectation that the spread in yields between the two instruments will narrow or widen to his Profit, (2) to a swap between two similar issues based on an anticipated change in yield spreads, and (3) to situations where a higher return (or lower cost) can be achieved in the money market for one currency by utilizing another currency and swapping it on a fully hedged basis through the foreign-exchange market.Is a form of trading which attempts to Profit by discrepancies in price due to location, funding, volatility, communications, response to information, or other differences. Typically, the price differences are small and only the quickest, most cost efficient or funding efficient parties participate. Compare with Risk Arbitrage.

 Ask price: A dealer's price to sell a security; also called the offer price.This is the price dealers are willing to sell securities at. This is typically higher than the price dealers are willing to buy securities (called bid price). The difference between the ask and bid prices is called the bid-ask spread and represents the Profit to the dealer for supplying immediate execution services.See Ask.

 Average pre tax profit margin: Pre-tax Income divided by Sales. This measures how well management converts sales dollars into Profits after deducting all the operating expenses for making and selling its products. Compare the last two years' pre-tax profit margins with the 5-year average to show the trend of growth.

 Average profit margin: See Average Pre-tax Profit Margin.

 
 Related Terms
 

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