What is the value transfer?

Value conversion is any process where the value of value is effectively transformed to another value. The most common method of transformation includes a secondary system, usually money. The person sells one property for money and uses this money to buy a new asset. From an economic point of view, this process in principle makes the first asset to the second asset. Originally, this term applied only to the items of the actual value, but in recent years the types of covered assets have grown to coverage intangible substances such as reputation or talent. Finally, when solving the securities market, the transfer of values ​​has a different meaning that only applies to securities.

The initial importance of the transformation of value is still the most common form. This economic definition is often used as a method of comparing the approximate values ​​of two different items to detect the differences in the total value. One item is converted into another and then the total net assets are examined for change. While such cases of this comparison is easy asIt is a luxury car trading for egg sandwich, sometimes it is very complex, such as trading in a combination of money, possibilities and material for another set of securities.

with the strict meaning of the transformation value, the comparative objects must have a value and must have a physical existence. In some cases, such as securities, physical existence is usually represented through a stock certificate, bonds or similar acceptance of the purchase. In addition, the assets must be traded directly or disposed of into a cash asset and then directly purchased.

This strict definition was a common meaning used for many years. In recent years, this date has been taken over by a new identity. In an increasingly information and specialized world, some skills have become much more valuable than in the past. In addition, intangible such as artistic talent, management ability or reputation of companies PThey use the conversion of values ​​to provide them with a specified amount of money. This allows the owners of these intangible substances to effectively sell people who can use them.

In negotiations only with the market with securities, the definition acquires a very different meaning. In this case, the conversion is based on the transfer price of the asset. If the security is divided by means of a gear price, then it is the value of how much money is earned through distribution rather than selling security directly. In order to make money, the price of conversion must be under the market price for asset.