Monday, January 9, 2017

WSJ: What Is ‘Price Discovery’ and Why Does It Matter?

By SIMON CONSTABLE

Sometimes investment professionals use the term “price discovery” to describe how markets work. Here is what it means and why it is relevant.
Price discovery is the mechanism by which competing buyers and sellers determine the price of a security or an asset. Typically, this is done on an exchange such as the New York Stock Exchange. Read more here.

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