Market value: Difference between revisions
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''Values and | ''Values and prices.'' | ||
The fair price for which an asset might be sold if it was offered for sale. | The fair price for which an asset might be sold if it was offered for sale. | ||
Revision as of 10:42, 8 April 2021
Values and prices.
The fair price for which an asset might be sold if it was offered for sale.
The price which might be agreed between an informed buyer and an informed seller.
This is distinct from the book value.
In the case of widely traded assets, some current market values may be a readily observable quoted market price.
However, current market prices may differ significantly from the intrinsic values of assets. For example, equity market capitalisation emphasises this concept in relation to the share prices of listed companies.
