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Current Price

Reviewed by Anjaneyulu | Updated on Oct 05, 2020

Catalogue

Introduction

The current price refers to the latest selling price for an exchange-traded stock, currency, product, or precious metal. It is the most reliable indicator on the present value of that securities.

In the case of a stock, the current price is quoted as 10% of the purchase value or face value. The current price of a listing of an investment portfolio reflects the value at a given date.

Understanding Current Price

The current price is also known as market value. It is the price at which a stock, share, or any other security traded last. The current price works as a baseline in an open market. It shows the price a buyer would be willing to pay, and a seller would be willing to accept in that security for a subsequent transaction.

This is an indicator, but it is not a guarantee. The current price does not determine the next selling price on a market. Changes in the security-related supply and demand will continue to change its price.

Types of Current Price

  1. Current Price in Over-the-Counter Costs The current price is based on the bid price and ask price by buyers and sellers when a security is sold over-the-counter (OTC). The current price in an OTC trade is dynamic and fluctuates based on supply and demand.

  2. Current Price in Bond Market The current price of a bond is determined by measuring the actual interest rate against the bid-related interest rate. The par or face value is then calculated to represent the remaining interest payments due before the maturity of the bond. The closer a bond reaches maturity, the closer it will be to the face value listed on the bond.

  3. Current Price in Retail Sale In a retail store, the current price of an item is the amount which is charged at that moment. If the item is on sale, the price will be lower than the retail price for that item.

Related Terms

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