Social Sciences, asked by mraganksharma011, 11 months ago

what is trade value?​

Answers

Answered by palakkhan017
0

Answer:

Trade-In Value is the price a dealer would offer for a consumer's vehicle to apply toward the purchase of another car in the dealer's inventory. The trade-in value is more closely aligned with the auction wholesale value, meaning what the car would sell for at an auction to interested retailers...

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Answered by harishsharma3
0

Answer:

hii mate

Explanation:

Trading Value

Source: Encyclopedia of Banking & Finance (9h Edition) by Charles J Woelfel

(We recommend this as work of authority.)

Among traders or speculators, the price at which a purchase, whether a bond, stock, real estate, or commodity, must be sold in order for the owner to get out even; in the language of speculation, the price at which a purchase stands the owner, e.g., if a stock has been purchased at 90, it must be sold at that price if the owner is to avoid taking a loss. The trading value at the time of actual purchase is equal to the cost, market and book values.

Where trading operations are constantly engaged in, a record of trading values is extremely important, because these values are the indicators of the profitableness of individual transactions. To illustrate the use of trading value, suppose ten bonds having a par value of $1,000 each are bought for $9,000. The trading value is 90 (100 equals par); that is, ten bonds would have to be sold at 90 in order to avoid a loss. If, however, five of these bonds are sold for $5,000, the trading value for the remaining five is 80 because they may be sold at that price without this particular block of bonds being closed out at a loss. Bond and stock traders apply the profit made in one group of securities to losses made in others to determine net results and for tax purposes.

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