What does disagerate mean?

DISAGE is a term used in the financial market to refer to the difference between the nominal value of a title or active and its market value. In other words, it is the discount applied on the nominal value of a title or active at the time of its negotiation.

How does the disagreement work?

When an asset or active is issued, it has a nominal value, which is the value by which it was originally issued. However, over time, several factors can influence their market value, such as interest rates, credit risk, supply and demand, among others.

When the market value of a title or active is lower than its nominal value, it is said that it is being negotiated with a disagreement. This means that investors are willing to pay less than the nominal amount to acquire this title or asset.

Example of DESAGAGE

Suppose a company issues a title in the nominal value of $ 1,000.00. However, due to a number of factors, such as a drop in demand for this title, it is being negotiated in the market for $ 900.00. In this case, the disagreement would be $ 100.00, ie 10% over the nominal value.

DISAGE can occur in various types of assets, such as government securities, debentures, actions, among others. It is a way to pricing the risk and market conditions of a particular or active title.

DESAGAGE AND INVESTMENTS

DISAGE is an important factor to consider by investors when making investment decisions. A title or asset negotiated with a disagreement may represent an opportunity for advantageous purchase, as the investor will be acquiring this title or active for a value lower than its nominal value.

However, it is important to emphasize that the disagreement may also indicate a higher risk associated with the title or asset. Therefore, it is essential to carefully analyze the factors that are influencing the disagreement and assess whether the investment is suitable for your profile and objectives.

Conclusion

DISAGE is the difference between the nominal value of a title or active and its market value. It occurs when the market value is less than the nominal value and may represent an advantageous purchase opportunity, but also indicates a higher risk associated with the title or asset. Therefore, it is important to carefully analyze the factors that are influencing the disagreement before making investment decisions.