Price discovery

Price discovery is the process through which buyers and sellers determine the value of a good or service in the market. It involves their interactions—such as buying, selling, and negotiating—that help establish a final price. Factors like supply and demand, available information, and market conditions influence this process. Essentially, price discovery ensures that the price reflects the true worth of an asset based on current market perceptions, helping both parties reach an agreement that accurately represents what the item is worth at that moment.