Making – up Price

Making – up Price – This is the price at which a transaction is carried out for the next settlement and the same is recorded in the stock exchange. This price is decided just to settle the share and there is no actual delivery or receipt of any shares in this process.

This speculative trading is used in London and New York stock exchanges. One may note that on the day of settlement the transaction has to be completed mandatorily, while the making-up price can be fixed in advance, one can make a choice to carry forward the share trading till the day of the settlement.

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For instance, one may carry out a share trading transaction on a particular day; however, he may not wish to materialize it instantly, hence the person can choose to wait for the settlement day when the transaction is set to settle in the stock market.

Edited and Updated 08th March 2014

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