Exit price definition
/What is Exit Price in Fair Value Accounting?
Exit price is the price that a seller would receive in exchange for the sale of an asset or would pay to transfer a liability . This price should be obtained in an orderly transaction between market participants. A exit price is a bid price, since the seller is setting an offer price for prospective buyers. This is different from the ask price that a buyer would state in order to acquire an asset. When there is a robust market, with many buyers and sellers, the difference between the offer price and ask price will likely converge.
What is Exit Price in Investing?
Exit price is the price at which the owner of an asset sells it. This amount is net of any commissions paid on the sale. For example, George purchases shares in Alpha Corporation for $25 and later sells them for $30, paying a $1 brokerage commission on each share sold. The exit price is $29, and his profit on the transaction is $4 per share.
