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 ?
Whall, joined by members of ADTs senior executive team and board of directors, rang the NYSE Opening Bell, followed by a visit to the DMM location on the Trading Floor to observe the price discovery process.
This, the statement said should ensure participation of high net worth individuals in the price discovery process.
The group increased or decreased its bidding volumes in a manipulative fashion while keeping its bid price constant, so as to manipulate the strike price discovery process and induce other bidders
BBK chief executive Reyadh Sater said the bank believed the "collective efforts will enhance trading volumes, and provide a more accurate price discovery process for listed companies in the future".
According to Tetangco, the more immediate benefit of the new auction-type instruments under the interest rate corridor is that the price discovery process will be facilitated by the bids we receive from market participants, which will provide information for the BSP and for the market on the prevailing cost of and demand for liquidity, which would also result in better price discovery allowing the industry to establish more accurate interest rate benchmarks moving forward, he said.
The risk of such interventionist measures is that they disrupt the price discovery process and lead to moral hazard, with investors coming to view the government as a backstop for share prices, said Poltak Hotradero, the head of research at Indonesia's stock exchange.
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.
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.
But the price discovery process is haphazard, with most small truck buyers having neither bank accounts nor loans from financial institutions.
For Asian exchanges, the rationale for drawing highfrequency traders is clear - they can help improve liquidity and velocity, and enhance the price discovery process.