In any exchange, sellers prefer to part with their assets for the highest price possible while investors interested in buying the same asset desire the lowest purchase price possible. At some point, a mutually agreeable price is reached between buyers and sellers. It is at this point that economists say the market has "cleared" and transactions take place. Thus, the clearing price of an asset is the price at which it was most recently traded.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
market clearing price — UK US noun [C] (also equilibrium price) ECONOMICS ► the price of goods or services that exists when the quantity supplied is equal to the quantity demanded: »The three firms supply a total of 1,800 video rentals daily at the market clearing price … Financial and business terms
Market clearing price — The price at which supply equals demand for the Day ahead or hour ahead markets. U.S. Dept. of Energy, Energy Information Administration s Energy Glossary *** The price at which supply equals demand. The Day Ahead and Hour Ahead Markets.… … Energy terms
Price discrimination — or price differentiation exists when sales of identical goods or services are transacted at different prices from the same provider. In a theoretical market with perfect information, perfect substitutes, and no transaction costs or… … Wikipedia
price — A fixed value of something. Prices are usually expressed in monetary terms. In a free market, prices are set as a result of the interaction of supply and demand in a market; when demand for a product increases and supply remains constant, the… … Financial and business terms
Price book — In economics, a price book is a book in which the normal prices of an item are listed for all suppliers. This allows one to determine the lowest price possible.If a group of suppliers adhere to a particular price book, in other words, they set… … Wikipedia
Clearing (album) — Clearing Studio album by Fred Frith Released 2001 … Wikipedia
Clearing Customs — Studio album by Fred Frith Released February 201 … Wikipedia
Clearing — may refer to: Glade (geography), a tract of land with few or no trees in the middle of a wooded area Deforestation, the clearing away of trees to make farmland Clearing (finance), the process of settling a transaction after committing to it… … Wikipedia
Market clearing — When markets clear, they are priced so that the entire supply is sold. However, retail stores usually restock goods as they are sold. In economics, market clearing refers to either a simplifying assumption made by the new classical school that… … Wikipedia
Cheap at Half the Price — Cheap at Half the Price … Wikipedia