market value

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Related to market value: book value, fair 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.

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.

market value

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

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.

market value

the amount that a firm's FIXED ASSETS and CURRENT ASSETS such as STOCKS could be sold for on the open market. In a company's BALANCE SHEET such assets are usually recorded at their HISTORIC COST though market value may be substantially higher, reflecting current prices.

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.

References in periodicals archive ?
A three-bed Liversedge house with a market value of PS115,00 was sold for PS43,700 - a discount of PS71,300.
ii) the FBR rate as percentage of fair market value was higher when compared with a similar comparable location.
In years following market growth, assessed values continue to rise even if market values decline, as is the ease for fiscal year 2011.
MVA, or market value added, is the most objective measure of corporate performance.
Specifically, the fair market value of shares with respect to which ISOs may first become exercisable in any one year (under all plans of the employer corporation and its parent and subsidiary corporations) cannot exceed $100,000.
The first step is estimating the fair market value of the property at its highest and best use under current conditions.
WALTER SCHUETZE: The SEC has been urging the Financial Accounting Standards Board to require that marketable debt and equity securities be accounted for at fair value or market value in the face of the financial statements.
The agreement may or may not be acceptable to the IRS as defining the fair market value of the decedent's business interest for estate tax purposes.
Based on financial reporting standards activities over the past year, the group emphasized the importance of regulatory, corporate, and public understanding of their earlier statement that "the move toward market value in financial reporting is in the best interest of the public, investors, government, and business decision makers.
The rankings in this article are based on a concept known as market value added, or MVA.
Thanks for sending me the FASB exposure draft on "Disclosures on Market Value of Financial Instruments.