target price

target price definition - business

target price

  1. The price that an investor or a security analyst expects a security to achieve. Generally, when a security achieves the target price, it is time to close out a position in it.
  2. The price at which an investor hopes to purchase an asset. For example, a company desiring to take over another firm may set a target price for the firm.
  3. The selling price for which a product or service is developed. For example, an editor at a publishing company proposes a series of children's books with a target price of $7.95.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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