Sale

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DEFINITION of 'Sale'

1) In general, a transaction between two parties where the buyer receives goods (tangible or intangible), services and/or assets in exchange for money.

2) An agreement between a buyer and seller on the price of a security.

INVESTOPEDIA EXPLAINS 'Sale'

Every day, millions of people take part in countless sales transactions across the globe, creating a constant flow of value which forms the backbone of our economies. Sales of investment vehicles in the financial markets represent highly refined value exchanges.

For example, consider a typical middle-class person purchasing their first home. Obviously, a sale occurs when the home is sold to the buyer. However, there are many layers of sales surrounding the deal. Very likely, a lending institution would sell financing, via a mortgage, to the homebuyer. Then, the lending institution likely sells that mortgage to another individual as an investment. An investment manager could earn a living trading bundles of mortgages and other kinds of debt financing.

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