What is the price of real value?

real value prices is the process used to achieve a real value or fair price for asset. The aim is to identify and assign a price that is considered in accordance with what is happening on the market, allowing the investor to decide on the purchase and sale of assets that have the potential to generate certain revenues, or at least minimize losses. The price of the real value price has supporters and detectives in the investment world, considered a viable way to find a balance between market price and real value.

One of the advantages that supporters attribute real value prices is the ability to use current market conditions to buy low and then plan to sell the same assets for the time when these assets be borne by the market value. For example, if the mutual fund falls sharply, but there is a reason to believe that the fund will level and bounce back to the next business day, an investor can set up a fund in which the fund's shares are purchased at a low price at present. The broker is pOkay instructed to sell as soon as the stock reaches a certain level and effectively generates profit for the investor.

While real value prices are preparing a journey for some investors to generate prices based on events that affect the performance of assets for a short time, this approach also results in creating losses for others trading on the market. This means that if the investor sells his investment in a mutual fund due to a sudden decrease in value, this selling price must be at least as well as the original investment to avoid loss. Often this is not the case, and the investor must take over the loss to prevent any further erosion of the market price. If this assets are reflected in the following commercial DniVestor, the storm could be weathered and maybe come forward by deciding to hold rather than sell. In this case, they led to a loss of real value prices to loss of one side and profitu for the second.

Detractors tend to perceive the use of real value prices in the assembly of shops as an ethics problem, with one side using the other for circumstances that are likely to be short -term. Proponents note that sellers will eventually decide whether to adhere to assets in the hope that the value of the asset will be renewed or sold before there is a greater loss. From this point of view, the buyer simply identifies what is available on the market and determines whether the acquisition of asset is likely to be beneficial, and then starts the purchase at the price required by the seller, with this price equal to the current market price or real value or at the real value of value, or at a real value price.