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Understanding price and value in the context of investing, Part 1

Thiveyen Kathirrasan
Thiveyen Kathirrasan • 9 min read
Understanding price and value in the context of investing, Part 1
Is the price right? The relationship between price and value is a central theme in investing. Photo: Bloomberg
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There are many ways to describe the idea of investing, but two concepts usually stand out. They are the price and the value of the investment. It is essential that investors understand what each concept means individually and how they relate to one another to make potentially better investment decisions.

This will be the first part of the series on understanding the price and value of the investment, along with their relationship and examples of how it can and should be applied. Specifically, this will be in the context of stock investing.

1: The price

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