Going price
| Going price |
|---|
| See also |
Going price is the current general price (value expressed in money) used to value goods or services. It is also determined by the current market price. It is used in sales transactions. To set the current price, prices from the given month or year are usually used. To get the most current price, compare products / services with similar characteristics. These prices may be different, as each seller and buyer has the law to negotiate the price. Inflation and a change in demand and supply for a given good or service have an impact on the going price[1].
Going price of securities
The current share price is determined on the stock exchanges. Supply and demand have a great impact on the course. If more people are interested in buying the shares, their price will be higher.
Shares are most often issued when a company needs to increase its equity. The current share price shows the situation of the company. This is important information for potential investors[2]. The going share price shows us the current situation of the company, but it also shows us the company's future[3].
Current price of a foreign currency expressed in national currency
The price of one currency expressed in another currency is called the exchange rate. The currency market brings together sellers and buyers of currencies. Changes in demand and supply have a huge impact on the going price of the currency[4].
The central bank is the institution responsible for determining the going value of a given currency. Exchange rates are determined based on:
- inflation
- interest rates
- state of the economy
Going price in the valuation of fixed assets
The sale of a fixed asset involves its valuation. We can use a fixed asset valuation:
- purchase price
- manufacturing costs
- current value
The current value can be balance sheet or market. To calculate the current balance sheet value of a fixed asset, subtract current depreciation from the initial value. If a fixed asset is fully depreciated, we can use the market price to determine its going price. By comparing similar items, we are able to negotiate a higher sale price.
Footnotes
References
- Fabozzi F.J. (2008)., Handbook of Finance. Financial Markets and Instruments, John Wiley&Sons Inc., Hoboken, New Jersey.
- Lusztig P. Schwab B. (2014)., Managerial Finance in a Canadian Setting Fourth Edition, Butterworths.
- Steinhardt G. (2019)., Market-Value Pricing: Definitions, Concepts and Processes for Market-Value Centric Pricing, Springer.
- Vause B. (2009)., Guide to Analysing Companies, Bloomberg Press New York.
Author: Klaudia Broś
