Updated on March 7, 2023
Sales or a sale is defined as a transaction between two or more parties, the buyer and the seller, in which the seller sells goods, products, assets or services against money.
A sale in business is generally seen as a contractual obligation between two or more parties i.e. buyers and sellers. In financial markets, sale can be defined as an agreement between two parties, when they (buyer and seller) close a deal or agree upon a certain price of a security.
What constitutes a sale?
Sales can be defined as:
a. Any transaction involving exchange of goods or services for a particular sum of money
b. An activity which involves an ownership change from seller to the buyer in exchange for a monetary value or consideration
What are the features of a Sale transaction?
The main features of a sale transaction are:
a) A sale takes place between two or more parties.
b) It involves a seller and buyer.
c) There is an exchange of goods and services for money or monetary value.
d) In markets, sales is defined as an agreement to deliver a security to the buyer for an agreed value
e) A Sale transaction is not complete without equivalent value compensation