Sale

AAA

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.

RELATED TERMS
  1. Barter

    The act of trading goods and services between two or more parties ...
  2. Over And Short

    An accounting term denoting a discrepancy between reported and ...
  3. Point-Of-Sale Terminal

    A type of electronic-transaction terminal. Point-of-sale terminals ...
  4. Wash Sale

    A transaction where an investor sells a losing security to claim ...
  5. Crystallization

    The act of selling and buying stocks almost instantaneously in ...
  6. Trade

    A basic economic concept that involves multiple parties participating ...
Related Articles
  1. Economics Basics
    Economics

    Economics Basics

  2. Understanding Economic Value Added
    Markets

    Understanding Economic Value Added

  3. What are Business Ethics?
    Investing

    What are Business Ethics?

  4. What is Globalization?
    Investing

    What is Globalization?

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center