Financial transaction

As an economic transaction is referred to in the industry, the mutual transfer of rights of disposal of goods (goods or services ), or claims between various economic agents (eg, individual, household, business, government).

The totality of all economic transactions in which economic objects (goods, receivables) with consideration ( exchange) or without compensation ( transfer, donation) to pass from one economic agent (companies, private and public households ) to another is known as the business cycle.

Overview

Economic transactions are in reality not without friction losses which are known as transaction costs. This can be information gathering costs (eg search for information about potential transaction partners ) or settlement costs (such as brokerage fees, transportation costs). Furthermore, it is assumed in economics assume that a transaction only comes into effect when a promise of transaction partners both an advantage from it. With transactions costs and their main focus was the economics in the context of the transaction cost theory.

The importance of the transaction concept in the economic analysis is the abstraction from the physical exchange process. John Rogers Commons differed as early as 1931 a physical exchange level and a transaction level.

Usually transactions are institutions defined independently, although they are always indispensable confounded institutionally - law. Often the contractual nature of transactions is highlighted.

Classification

Five transaction types can be distinguished:

• Good vs. Good: exchange, real exchange / barter
• Good against bad: purchase / sale of goods
• Good vs. Transfer: Transfer Real / Real donation

It may be a service ( transaction) act with or without consideration. Services without compensation is called the gift or transfer.

Example

Person A wants to sell her bike, unless it receives at least 50 euros for it. Person B is looking for a bike, but would like to spend a maximum of 100 euros for it. In this case would be any price that is above the price floor of A and below the upper limit of B ( ie between 50 and 100 euros ), beneficial to both parties, and a deal could come about.