The concept quotation, from the Latin term quotus, which means 'how much', refers to the fact of setting a price, pay a fee or estimate something. This word is used to refer to the documentation that indicates the real value of a service or a good.
It can also be defined as the price at which a purchase or sale of a good or a security can be made in the mercado, but it also applies to the price at which buyers and sellers are willing to carry out operations, but which is not necessarily the price that finally closes. In purchase and sale operations, the term quotation is often used to refer to the price that each of the parties would be willing to pay to seal the agreement.
Quote types
The meaning of quotation will depend on the sector in which it is used.
- Stock price: this concept is used to refer to the admission of a financial asset in the Stock Exchange. Specifying a little more, it is the daily official appraisal of a financial asset which will depend on the purchase and sale orders of said asset. By using the term listed on the stock market, we mean that the stock market or financial markets you are pricing that asset.
- Social Security contribution: refers to the quota that both workers and employers must contribute to the State. In general, it is usually a percentage of the salary or a monthly fraction of what the worker earns, which is entered as a retention in this public system.
- Quotation in companies: it is an informative document that the purchasing area of a company or organization used to start a negotiation. This document does not cause any form of accounting record, since it only aims to place its fair price on a service or good.