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The bid price valuation

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Super Contributor

The bid price valuation

Really ! Using the bid price to value our portfolios is in my opinion not on....Rather use the ruling price or the previous days MTM price....After all the Bids will almost always be lower than the ruling price...Take POY this morning its price has not moved and yet using the BID price its shown at 5 cents lower than the ruling price!....My portfolio reflects a larger fall today than there really is....Please bring back the more simpler version that we had before this one ,with all its fancy columns.
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6 REPLIES
Super Contributor

Re:The bid price valuation

Oops,partially my fault,as i did not notice the wrong button atop was on BID not RULING. How ever there still too many columns The whole process could be simplified further.
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Super Contributor

Re:The bid price valuation

I think the bid price is the correct way of valueing the share as that is what you'd realise if forced to sell,ruling price is history.
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Super Contributor

Re:Re:The bid price valuation

U are correct in well traded stocks,but in those not so well traded bids can be manipulated,so then sellers would have to be extra careful.
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U-Dog
Contributor

Re:Re:Re:The bid price valuation

Quite interesting that per IFRS, you need to use last submitted bid price valuation to mark to market. I don't agree with this necessarily as it creates the opportunity for manipulation but its good to know - especially when looking at the financials of companies with listed investments. If the last bid price is put in with a thin volume it can definitely distort asset valuations
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Super Contributor

Re:Re:Re:Re:The bid price valuation

IFRS is alway 10 year too late for the party.IFRS need to be more proactive and less reactive.
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royzen2
Contributor

Re:The bid price valuation

I think using the bid price reflects the true value of ones portfolio. But then the volume for that bid is also important. Whichever you use is up to you. The ruling price can also be manipulated. That's why we have the last trades table.
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