price of a bond expressed as an annual percentage rate; the yield to maturity expected by the purchaser. Contrast with dollar price, the price actually paid by the investor.
In general: price an investor uses to calculate capital gains when selling a stock or bond. See also basis; stepped-up basis.
Odd-lot trading: the price arbitrarily established by an exchange floor official at the end of a trading session for a buyer or seller of an odd lot when the market bid and asked prices are more than $2 apart, or if no round-lot transactions have occurred that day. The customer gets the basis price plus or minus the odd-lot differential, if any. This procedure for determining prices is rare, since most odd lots are transacted at the market bid (if a sale) or asked (if a buy) or at prices based on the next round-lot trade.
