B
   
   Break-Even Point
   















 

B

Break-Even Point

(1) The sales volume where total revenue equals total cost and an enterprise experiences neither profit nor loss. (2) A price at which a transaction produces neither a gain nor a loss. (3) A price on the underlying instrument at which two derivative strategies or a cash and a derivative strategy produce comparable gains or losses. Also called Pay Back. See Call (diagram).

Glossary * B