Historic and Price discovery: Difference between pages

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Measures based on actual past data, rather than forecast future data.
Price discovery is the process by which market participants obtain information about the prices at which counterparties are willing to buy  or sell specific financial instruments or other assets.


For major transactions it is often facilitated by a professional adviser or intermediary.


For example the historic dividend yield is normally based on the most recent past dividend.


(As opposed to the prospective dividend yield which is normally based on the next forecast future dividend.)
:<span style="color:#4B0082">'''''Centralising FX price discovery'''''</span>


:"Let's say a corporate has gone through all the necessary steps... and now has a multibank panel at its disposal for FX execution.


Another example is the historic Price to earnings ratio (PER) which is normally based on the earnings for the most recent past period.
:Each counterparty might have different trade processes and systems to navigate, and so the corporate might have to make an additional investment... in an aggregator platform to centralise price discovery..."


(As opposed to the prospective PER which is normally based on the projected earnings for the nearest future forecast period.)
:''Multibank FX platforms and fintech FX solutions - Eric Huttman, CEO of MillTechFX - The Treasurer online, October 2021''




== See also ==
== See also ==
* [[Dividend yield]]
*[[Aggregator]]
*[[Historical cost]]
*[[Broker-dealer]]
* [[Historical cost accounting]]
*[[Capital allocation]]
* [[Multiples valuation]]
*[[Counterparty]]
* [[Price to earnings ratio]]
*[[Circuit breaker]]
* [[Prospective]]
*[[Electronic communication network]]
*[[Execution]]
*[[Foreign exchange]]  (FX)
*[[Investment bank]]
*[[Opaque]]
*[[Price formation]]
*[[Price transparency]]
*[[Transparency]]


[[Category:The_business_context]]
[[Category:The_business_context]]
[[Category:Financial_products_and_markets]]

Revision as of 09:15, 20 March 2022

Price discovery is the process by which market participants obtain information about the prices at which counterparties are willing to buy or sell specific financial instruments or other assets.

For major transactions it is often facilitated by a professional adviser or intermediary.


Centralising FX price discovery
"Let's say a corporate has gone through all the necessary steps... and now has a multibank panel at its disposal for FX execution.
Each counterparty might have different trade processes and systems to navigate, and so the corporate might have to make an additional investment... in an aggregator platform to centralise price discovery..."
Multibank FX platforms and fintech FX solutions - Eric Huttman, CEO of MillTechFX - The Treasurer online, October 2021


See also