أنشئ حسابًا أو سجّل الدخول للانضمام إلى مجتمعك المهني.
Value of an asset is worth of an asset. In short, it is what asset can earn over its life plus the terminal value.
Price of an asset is the function of demand and supply. Value of an asset is one of the consideration while determining the price of an asset.
The asset here refereed could be real asset like land, building, machinery etc; or a financial asset like shares, bonds etc.
Price is the cost of an asset plus additional rewardto the producer for his labour and capital
Value is a function of time,place and purpose.Value is determined in the open market by the forces like demand and supply of the asset
The price (Book Value) of an asset is what paid for a particular asset. This price never changes so long as you own the asset. On the other hand, the value is the (market value) what is mean the current price at which you can sell an asset.
For example, if you bought a house 10 years ago for $300,000, its price (book value) for your entire period of ownership will remain $300,000. If you can sell the house today for $500,000, this would be the value (market value).
Price is what you pay and Value is what you realize.
first you isolate the these two, Price and Value, the price of a product is a notice of the amount a product is available across market, on the other hand, the value of a product is influenced by its content, location, environment, durability, at other times, its age..however, you cannot isolate this two factors in the market, they are complimentary, one determines the other..A car to be resold cannot be priced as a brand new coming out of the factory into the market..but a pristine aged property in a countryside could be worth more on the property market than the recent up for grabs residential scheme, as a result of other factors, the Valuers whom are incharge of Valuation, convinces you why you must pay more for it..
Nonetheless, valuation is not meant for all items on sale, for instance, you can`t talk Value in respect to wrist watches, creams,or electronics for that matter, it will never appreciate with age, rather newer models and products could reduce its patronage..and affect Prices. at the same time you can`t fix Price on Artworks, property, or corporate investments, these grow with its use..and its value determines the market worth..i think am short on further ideas.. cheers.
