Price discovery process

Price discovery process

The process of determining the prices of assets in the marketplace through the interactions of buyers and sellers.

Price Discovery

The process by which buyers and sellers interact to determine the fair market price of an asset. See also: Law of supply and demand.
References in periodicals archive ?
The Platts price assessment process opens up the price discovery process to active market participants.
Short position reporting requirements - MAS and SGX recognise the role of short selling in the price discovery process.
Rob Nicholl, chief executive officer of the AOFM, said, 'A syndicated issue is an efficient means of placing bonds with end-investors and of establishing a benchmark line quickly, it also assists the price discovery process.
The final offering price will be determined by book building, a price discovery process in which demand indications are collected from institutional investors both domestic and international.
This will not only provide market participants with transparent and accurate trading information but will also assist in the price discovery process.
EXODUS The sharp drop in liquidity and its correlation with the failure of the price discovery process are unambiguous.
Issues related to pricing, size, and maturity of the bond will be determined through a book-building and price discovery process, similar to the book-building process for international bonds, said Dr Yahya A Alyahya, GIB's chief executive officer.
The authors interpret these results to suggest that the price discovery process in the equity, markets is dominated by the realization of expectations and not by changes in market expectations.
Additionally, everyone can view the price discovery process.
Fragmentation thus raises questions about the quality and completeness of the price discovery process and concerns that investors' orders to buy and sell securities may not be executed at the best price or the lowest cost.
As noted in the introduction, there are several reasons to expect differences in the price discovery process to news announced during trading and nontrading hours.
According to CFETS' publication ChinaMoney, with renminbi cross-border inflows and outflows intensifying in 2012, development of the offshore renminbi market will drive domestic financial market reform, and aid in a fair and transparent price discovery process for renminbi foreign exchange rates.