Clearing Price

Clearing Price - Clearing price a price assigned to an asset, which could be cash, stock, bonds, and other securities, after a buyer has completed the bid and ask process. The clearing price notates the highest price that could be negotiated and that the buyer is willing to pay, and the lowest price that the seller of the asset is willing to take. This means buying a specific commodity at an agreed upon price that was negotiated between the buyer and the seller. The exchange of these assets usually takes place at the seller's discretion, unless arranged otherwise with the investor wishing to buy them.