market value

Market value

(1) The price at which a security is trading and could presumably be purchased or sold. (2) What investors believe a firm is worth; calculated by multiplying the number of shares outstanding by the current market price of a firm's shares.

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Market Value

A subjective estimate of what a willing buyer would pay a willing seller for a given asset, assuming both have a reasonable knowledge of the asset's worth. Market value is important in both law and accounting. In the former, it is often used in assessing damages as the result of a lawsuit. In the latter, determining the market value of an asset (e.g. after depreciation) is important to determining the amount of tax owed on it. Value investors look for companies with market values below their book values, believing these companies to be undervalued.

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market value

1. The price at which a security currently can be sold.

2. See market capitalization.

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Market value. The market value of a stock or bond is the current price at which that security is trading.

In a more general sense, if an item has not been priced for sale, its fair market value is the amount a buyer and seller agree upon. That's assuming that both know what the item is worth and neither is being forced to complete the transaction.

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market value

There are many different definitions of market value, depending on the organization finding it necessary to write a definition. Most definitions include the following: the price that would be paid by a motivated buyer to a motivated seller after a property's exposure to a marketplace of equally capable buyers,each with full information about the property and the market place and neither operating under any sort of outside influences.

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Market Value

What Does Market Value Mean?

(1) The current price at which investors buy or sell a share of common stock or a bond at a specific time. Also known as market price.

(2) The market capitalization plus the market value of debt. Sometimes referred to as total market value.

Investopedia explains Market Value

(1) In the context of securities, market value is often different from book value because the market value reflects future expectations. Most investors who pick stocks by using fundamental analysis look at a company's market value and then determine whether the market value is adequate or is undervalued in comparison to its book value, net assets, or another measure.

Related Terms:
• Book Value
• Face Value
• Fair Value
• Intrinsic Value
• Market Capitalization