Market prices


Also found in: Dictionary, Thesaurus, Legal, Encyclopedia.

Market prices

The amount of money that a willing buyer pays to acquire something from a willing seller, when a buyer and seller are independent and when such an exchange is motivated by only commercial consideration.

Market Price

What a willing buyer pays a willing seller for a given asset. In an efficient market, market prices are determined by the law of supply and demand and no other factors. In securities, a market price is the price of the most recent transaction of that security. Open markets, and capitalism in general, can only exist if prices are set by the market, at least most of the time. See also: Fair market value, Invisible Hand.
References in periodicals archive ?
Assuming the stock's current market price is $20, no compensation expense is recognized under Opinion no.
The ED defines (paragraph 5, page 2) the market value of a financial instrument as "the product of the number of trading units of the instrument times the market price - the amount at which a single trading unit of the instrument could be exchanged in a current transaction between a willing buyer and a willing seller, other than in a forced liquidation sale.
FOR A PUBLICLY TRADED financial instrument, the quoted market price in the most active market is the most reliable.
Market price is determined by buyers and sellers free to bargain and must be substantiated by independent data.