| Dictionary: market price |
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| Real Estate Dictionary: Market Price |
The actual price paid in a market transaction. Contrast with Market Value.
Example: A home was offered for sale at $100,000. It was appraised for $93,000, and actually sold for $95,000 in an Arm's Length Transaction. The market price is $95,000.
| Accounting Dictionary: Market Price |
1. Price at which the seller and the buyer agree to trade on the open market.
2. In Transfer Pricing, best transfer price (i.e., the price that will maximize the profits of the company as a whole), under the following conditions: (1) a competitive market price exists; and (2) divisions are independent of each other. If divisions are free to buy and sell outside the company, the use of market prices preserves divisional autonomy and leads divisions to act in a manner that maximizes the profits of the company as a whole.
| Law Dictionary: Market Price |
"established by public sales or sales in the way of ordinary business," 171 N.E. 2d 207, 213; "figure fixed by sales in ordinary business transactions, established when other property of the same kind and in the same or comparable location has been bought or sold in so many instances that such value may reasonably be inferred," 120 A. 2d 77, 80. This price is based on a theoretical transaction between a free seller and buyer dealing at arm's length. 367 F. 2d 104, 110. This term is synonymous with
| Wikipedia: Market price |
Market price is the economic price for which a good or service is offered in the marketplace. It is of interest mainly in the study of microeconomics. Market value and market price are equal only under conditions of market efficiency, equilibrium, and rational expectations.
In classical economics, market pricing is primarily determined by the interaction of supply and demand. Price is Interrelated with both of these measures of value. The relationship between price and supply is generally negative. Meaning that the higher the price climbs, the lower amount of the supply is demanded. Conversely, the lower the price, the greater the supply is demanded[1]. Market price is just one of a number of ways of establishing the monetary value of a good or a transaction. Shifts due to changing consumer preferences will inherently influence market price. [2]
Other measures of value include historical cost, the resource cost of the good or service[3], an appraised value (such as the discounted present value), economic value and intrinsic value.
This entry is from Wikipedia, the leading user-contributed encyclopedia. It may not have been reviewed by professional editors (see full disclaimer)
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![]() | Dictionary. The American Heritage® Dictionary of the English Language, Fourth Edition Copyright © 2007, 2000 by Houghton Mifflin Company. Updated in 2009. Published by Houghton Mifflin Company. All rights reserved. Read more | |
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