Sale

Loading the player...

What is a '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.

BREAKING DOWN '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. Purchase-Money Mortgage

    A mortgage issued to the borrower by the seller of the home as ...
  2. Owner Financing

    When a property buyer finances the purchase directly through ...
  3. Simultaneous Closing - SIMO

    A real estate financing strategy in which two simultaneous transactions ...
  4. Vendor Note

    A type of debt instrument used in a particular type of short-term ...
  5. Offer

    1. When one party expresses interest to buy or sell an asset ...
  6. Settlement Agent

    1. The party involved in completing a transaction between a buyer ...
Related Articles
  1. Term

    How Economies Depend on Sales

    A sale is a transaction in which a buyer receives goods or services, and the seller receives money or some other form of compensation.
  2. Home & Auto

    The Ins And Outs Of Seller-Financed Real Estate Deals

    There's more than one way to buy or sell a house. Seller financing presents yet another unique option.
  3. Home & Auto

    Ins And Outs Of Seller-Financed Real Estate Deals

    Seller financing works like this: Instead of a buyer receiving a loan from a bank, the person selling the house lends the buyer the money for the purchase.
  4. Home & Auto

    The Pros and Cons of Owner Financing

    Details on the upside and risks of this type of deal for both the owner and the buyer.
  5. Options & Futures

    Housing Deals That Fall Through

    Find why buyers back out and what you can do if you're left holding the bag.
  6. Term

    Comparing Tangible and Intangible Assets

    Tangible assets are physical assets such as land, vehicles or equipment.
  7. Home & Auto

    Home Sale Contingencies: What Buyers And Sellers Need To Know

    Home sale contingencies protect buyers who want to sell one home before purchasing another. Find out what buyers and sellers need to know about these contractual conditions.
  8. Home & Auto

    What You Should Know About Home Sale Contingencies

    A home sale contingency protects buyers who want to sell one home before purchasing another.
  9. Economics

    Explaining Tangible Net Worth

    Tangible net worth is determined by taking total assets, then subtracting liabilities and intangible assets.
  10. Home & Auto

    Homebuyers' Walkthrough: Buying A First Home

    Buying a home can be a lengthy, emotionally and financially draining process. Knowing what to expect can help ensure the process goes as efficiently as possible. Get Finances in OrderAs discussed ...
RELATED FAQS
  1. What are the benefits of an assumable mortgage?

    An assumable mortgage allows the purchaser of a property to assume the mortgage from the property's seller. The benefits ... Read Answer >>
  2. Why should you invest in tangible assets?

    Read about some of the possible benefits of investing in tangible assets, such as bullion, real estate, art, collectibles ... Read Answer >>
  3. What is the difference between a bill of exchange and a promissory note?

    Learn what bills of exchange and promissory notes are, along with notation of the primary differences between these two documents. Read Answer >>
  4. What's the difference between a letter of credit and a bank guarantee?

    Learn how letters of credit and bank guarantees differ, how they are used by banks and companies, and how buyers apply to ... Read Answer >>
  5. How are net tangible assets calculated?

    Learn about net tangible assets, what it measures and how to calculate a company net tangible assets using examples. Read Answer >>
  6. What are the differences between Ex Works (EXW) and Free On Board (FOB)?

    Learn about Ex Works and Free on Board, the main difference between these Incoterms, and the responsibilities of buyers and ... Read Answer >>
Hot Definitions
  1. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  2. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  3. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  4. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  5. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  6. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
Trading Center