Definition of Market price:
Accounting: Transfer price of a good or service (traded between a subsidiary and its parent) at which the profit of the whole enterprise will be maximized.
Bond market: Last reported price exclusive of accrued interest, also called clean price.
The market price is the current price at which an asset or service can be bought or sold. The economic theory contends that the market price converges at a point where the forces of supply and demand meet. Shocks to either the supply side or demand side can cause the market price for a good or service to be re-evaluated and change. It is important to calculating consumer and economic surplus.
The market price of a security is the most recent price at which the security was traded. It is the result of traders, investors, and dealers interacting with each other in a market.
General: Unique price at which buyers and sellers agree to trade in an open market at a particular time. In formal markets (such stock exchanges) there are two market prices: the offer (selling) price which is higher, and bid (buying) price that is lower. The difference between these two price is called margin or spread.
The price of a commodity when sold in a given market.
Securities trading: Current market price as indicated by the latest recorded trade. See also market value.
How to use Market price in a sentence?
- This morning I checked the market price for my stock and found that it had moved into my buy range.
- The market price is the current price at which a good or service can be purchased or sold.
- Knowing what the fair market price for a product is will let you know if the deal you are seeing is to good to be true.
- The bid and offer prices represent where an asset can be bought or sold right now.
- In financial markets, the market price can change quickly as people change their bid or offer prices, or as sellers hit the bid or buyers hit the offer.
- The world market price for nonfat dry milk.
- The two food companies agreed on a market price together and they shook hands, making the agreement final and legitimate.
Meaning of Market price & Market price Definition