The life of an individual or legal entity cannot be imagined without bidding. And this situation has been observed for a long time. Bargaining is a concept that persists in different economic systems. But it was in a market economy that it became the main means of selling. For an ordinary person, he is an opportunity to provide himself with material or spiritual benefits, and for an entrepreneur it is an element of activity necessary for the financial stability of the organization.
Definition of a concept
In general, there is no single definition of this term. Its meaning depends on the sphere in which the concept of "bargaining" is used. In ordinary life, bargaining is a buyer’s actions aimed at obtaining a certain product at a lower cost than it was originally offered. In large organizations, this term is most often called an auction. This is a public auction in which the buyer who has named the largest amount receives the goods.
It should be understood that bidding does not put pressure on another person. This is a way to compromise between several parties. And bidding can be offered both at the initiative of the buyer and seller. For example, discount cards are a type of bargaining initiated by a distribution network. The benefit is mutual: a person buys a product cheaper, and a store receives a regular customer who can bring him even more income than if he visited it occasionally and without a discount.
Types of bidding
There are two types of tenders in business: open and closed. Open bidding is an auction in which participants see how much is called another potential buyer, and during closed bidding they lose this opportunity. Closed auctions can be conducted both through regular mail and through the Internet. In this case, simply calling the highest value receives the goods, and the rest have nothing.
Trading volume
This is the total number of goods sold in one reporting period. Its quality may be a day, a month, a quarter or a year. As a rule, most often we are talking about the number of shares when the concept of "trading volume" is touched. And the higher this indicator, the greater the liquidity of the financial instrument used, that is, its ability to convert a share into money. As a rule, when it comes to the auction, it is most often referred to real estate. Although the seller can trade and movable. And stocks are just such a commodity. Therefore, trading volume is related to the auction.