Dictionary Home »
Business » markup
markup business definition
- The difference between a product's selling price and its cost, often expressed as a percentage of cost. For example, toothpaste purchased for $2.00 and selling at retail for $2.50 represents a markup of 25%. See also keystone markup, maintenance markup.
- An upward revaluation of a security by a dealer because of a rise in the security's market price. A dealer may decide that a markup on a security issue held in inventory is appropriate because of a rising stock market. Compare markdown 2.
- See spread 4.
- The difference between the price charged by a dealer to a retail customer and the prevailing price at which the same security is being offered by market makers. Compare markdown 3.
Learn more about markup