Derived Price

- A calculated estimate of a security’s value based on market data or pricing models.

Scenario:

A secondary market platform lists shares of a unicorn startup. The derived price is calculated using recent secondary trades, implied valuations, and investor demand.

Why This Matters:

Provides reference for buyers and sellers, aids fair value estimation, informs negotiation and pricing.

The Process:

The platform aggregates data, applies statistical models, and publishes a derived price for market participants.