Meaning
A price band defines the acceptable range for an item’s cost.Definition
It’s the specified upper and lower limits for a product, service, or security’s price, aiding market stability.Purpose and Function
Its purpose is to manage volatility, prevent drastic price changes, and guide buyers/sellers within a clear framework.Common Applications
Commonly used in stock markets for IPOs to set share bid ranges. Also in retail for categorizing products into price segments.Author
