What is a break-even price?

The break-even price covers the cost or initial investment into something. For example, if you sell your house for exactly what you still need to pay you would leave with zero debt but no profit. Break-even price calculations can look different depending on the specific industry or scenario, however, the overall definition remains the same.

What does breaking price mean?

Change one's offering or bid prices to move to a more realistic, tight level where execution is more feasible. Often done to trim one's position, thus "breaking price" from where the trades occurred (if long, "break price" downward by a certain amount). Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

What is a break in a stock market?

A break is a general term and doesn't have a specific magnitude attached to it. The arrows and ATR are highlighting the biggest breaks in price. A break, sometimes referred to as a breakout, is when the price of a security makes a sharp move in either direction, either higher or lower.

Why should a business offer a low break-even price?

By offering a relatively low break-even price without any margin markup, a business may have a better chance to gather more market share, even though this is achieved at the expense of making no profits at the time.