TRANSACTION PRICE Meaning and
Definition
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The transaction price is a term used in economics and finance to refer to the specific amount of money or consideration given in exchange for a good, service, or asset during a transaction or trade between two parties. It represents the agreed-upon value at which a product or service is purchased, taking into account any discounts, taxes, or other factors that may affect the final price.
The transaction price plays a crucial role in determining the financial implications of a deal or transaction. It serves as the basis for calculating the revenue or income generated from the sale of goods or services, allowing companies to assess their profitability and financial performance. In the case of financial investments, it represents the price at which a security or asset is bought or sold in a financial market, influencing investment returns and portfolio values.
The transaction price can be influenced by various factors, such as market conditions, supply and demand dynamics, negotiation skills, and the perceived value of the product or service. It is often subject to change and can be affected by external factors like inflation, exchange rates, or government regulations. Industries like real estate, retail, and stock markets heavily rely on accurate determination and recording of transaction prices for various reporting and financial analysis purposes.
In summary, the transaction price refers to the specific monetary value agreed upon by parties involved in a transaction, serving as a key metric in assessing financial performance and determining the value of goods, services, or assets exchanged.
Common Misspellings for TRANSACTION PRICE
- rransaction price
- fransaction price
- gransaction price
- yransaction price
- 6ransaction price
- 5ransaction price
- teansaction price
- tdansaction price
- tfansaction price
- ttansaction price
- t5ansaction price
- t4ansaction price
- trznsaction price
- trsnsaction price
- trwnsaction price
- trqnsaction price
- trabsaction price
- tramsaction price
- trajsaction price
- trahsaction price
Etymology of TRANSACTION PRICE
The word transaction originated from the Latin word transactionem, which is the past participle of the verb transigere. Trans means across or beyond, and agere means to drive or to do. Therefore, transaction literally means to drive or do across.
The word price came from the Old French word pris, which means value or price. It originated from the Latin word pretium, which also means price or value.
The term transaction price refers to the agreed-upon price for a particular transaction or exchange of goods, services, or assets. The etymology of transaction price is simply derived from the combination of the words transaction and price.
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