Breakeven Price

1. The amount of money for which an asset must be sold to cover the costs of acquiring and owning it.

2. The amount of money for which a product or service must be sold to cover the costs of manufacturing or providing it.

3. In options trading, the stock price at which investors can choose to exercise without incurring a loss.

Breakeven prices can be translated to almost any transcation. For example, the breakeven price of a house would be the sale price the owner would need to get to cover the home's purchase price, interest paid on the mortgage, hazard insurance, property taxes, maintenance, improvements, closing costs and real estate sales commission. At this price, the homeowner would not see any profit, but also would not lose any money.


Investment dictionary. . 2012.

Look at other dictionaries:

  • breakeven — The point at which an option buyer or seller experiences no loss and no profit on an option. Call breakeven equals the strike price plus the premium; put breakeven equals the strike price minus the premium. Chicago Mercantile Exchange Glossary *… …   Financial and business terms

  • breakeven point — The level of production, sales volume, percentage of capacity, or sales revenue at which an organization makes neither a profit nor a loss. The breakeven point may either be determined by the construction of a breakeven chart or by calculation.… …   Accounting dictionary

  • breakeven point — The level of production, sales volume, percentage of capacity, or sales revenue at which an organization makes neither a profit nor a loss. The breakeven point may either be determined by the construction of a breakeven chart or by calculation.… …   Big dictionary of business and management

  • Breakeven Point - BEP — 1. In general, the point at which gains equal losses. 2. In options, the market price that a stock must reach for option buyers to avoid a loss if they exercise. For a call, it is the strike price plus the premium paid. For a put, it is the… …   Investment dictionary

  • breakeven point — (1) The price level at which income equals expense. (2) The expense level at which expense equals income. (3) The market price of a financial instrument that just equals the purchase price plus cost of carry for an investor owning that instrument …   Financial and business terms

  • Breakeven Tax Rate — A rate of tax above which it is unprofitable to engage in a transaction. After the tax is paid, there would not be enough profit or financial benefit for the parties involved to justify the time and effort required to transact business. The break …   Investment dictionary

  • Modidor — An options strategy that consists of buying and selling out of the money calls and puts and is designed to lock in investor returns above or below a designated trading price. The modidor is a modified version of the iron condor, but differs in… …   Investment dictionary

  • Цена безубыточности — цена, позволяющая предприятию, производящему продукцию, лишь покрывать свои издержки. По английски: Breakeven price Синонимы: Цена, соответствующая точке безубыточности Синонимы английские: Price in BEP См. также: Рыночные цены Безубыточность… …   Финансовый словарь

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