Definition

1. Noun:
   • The price determined by open market transactions: "market value" refers to the current price at which an asset, security, or commodity would trade in a competitive, public auction setting between willing and knowledgeable buyers and sellers.
   • Fair value in an open market: It represents the estimated amount for which an item should exchange on the valuation date between a willing buyer and a willing seller in an arm's length transaction.

Usage Examples

• Noun:
  • The house's market value has increased significantly this year.
  • Investors are concerned that the stock is trading below its true market value.
  • The tax assessment is based on the property's estimated market value.

Advanced Usage

• "to be at/above/below market value": used to compare a specific price to the general market valuation.
  • The collector bought the painting for a price well below its estimated market value.
• "to determine/assess/establish market value": refers to the process of finding or setting this price.
  • An appraiser was hired to determine the market value of the business assets.

Variants and Related Words

• Market capitalization (market cap) (n): The total market value of a company's outstanding shares of stock. (Note: This is a related financial term, not a variant of "market value").
• Fair market value (FMV) (n): A legal and accounting term synonymous with market value, often used in contracts and tax contexts.

Synonyms

• Fair market price: The price agreed upon in an open and fair market.
• Current market price: The prevailing price at which something is being bought and sold.

Related Phrases

• Market value adjustment (MVA): A financial term for a penalty applied to the cash value of an annuity or insurance product if surrendered early in a changing interest rate environment. (Note: This is a related financial phrase).
• Market value decline: A decrease in the estimated selling price of an asset.

Related Concepts

• Book value: The value of an asset according to its balance sheet account balance, which may differ from its market value.
• Appraised value: An expert's estimation of an item's value, which aims to reflect its market value.

Noun

1. the price at which buyers and sellers trade the item in an open marketplace