Transaction

A transaction is a term used to describe an act in which there is an exchange or transfer of something of value between two or more parties involved. This exchange can take many forms, ranging from money and goods to services, information or even rights.

Transactions explained

Transactions occur in various contexts, such as finance, trade, business transactions and technology. Financial transactions usually involve the transfer of money, such as payments, investments, loans or the buying and selling of financial instruments such as stocks. In trade contexts, a transaction refers to the purchase and sale of goods or services between companies or individuals. A transaction typically involves several elements, including the parties involved, what is being exchanged, the terms of the agreement, the procedures to complete the transaction, confirmation of the transaction and often records for documentation and accounting purposes. Transactions are critical in our economy because they are the basis for trade and exchange of value between people and organizations, and they play a key role in financial and business activities.