What Is Average Price Put? An average price call is a put option whose profit is determined by comparing the strike price to the average price of the asset that occurred during the option’s term. Therefore, for a three-month average price call, the holder of the option would receive a positive payout if the average closing price
What Is Average Propensity to Consume? Average propensity to consume (APC) measures the percentage of income that is spent rather than saved. This may be calculated by a single individual who wants to know where the money is going or by an economist who wants to track the spending and saving habits of an entire
What Is Average Selling Price (ASP)? The term average selling price (ASP) refers to the price at which a certain class of good or service is typically sold. The average selling price is affected by the type of product and the product life cycle. The ASP is the average selling price of the product across
What Is Average Severity? Average severity is the amount of loss associated with an average insurance claim. It is calculated by dividing the total amount of losses an insurance company receives by the number of claims made against policies that it underwrites. Key Takeaways Average severity is the amount of loss associated with an average insurance claim.It
What Is Average Ticket? Average ticket is a metric that provides details on the average amount spent per customer per visit. Statistically, the average ticket is computed as the mean of your sales per visit and is calculated by adding total sales over a specified period and dividing by the number of visits with purchases.
What Is Average Up? Average up refers to the process of buying additional shares of a stock one already owns, but at a higher price. This raises the average price that the investor has paid for all their shares. Key Takeaways Average up refers to the process of buying additional shares of a stock one
What Is Automatic Execution? Automatic execution is a method for placing and executing trades without the need for manual input. Automated systems and trading algorithms allow traders to take advantage of signals to buy or sell an asset whenever that signal is identified, without the need for human interaction. Automatic orders can be created based
What Is an Automatic Premium Loan? An automatic premium loan (APL) is an insurance policy provision that allows the insurer to deduct the amount of an outstanding premium from the value of the policy when the premium is due. Automatic premium loan provisions are most commonly associated with cash value life insurance policies, such as whole
What Is an Automatic Rollover? 1. An automatic rollover is the transfer of a qualified retirement plan distribution into an individual retirement account (IRA) with no action required by the account holder. This happens when a company removes an employee with a small balance from a company-sponsored retirement plan after they leave the company. Employees
What Is an Automatic Stabilizer? Automatic stabilizers are a type of fiscal policy designed to offset fluctuations in a nation’s economic activity through their normal operation without additional, timely authorization by the government or policymakers. The best-known automatic stabilizers are progressively graduated corporate and personal income taxes, and transfer systems such as unemployment insurance and
