Market taker and Market value: Difference between pages

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A 'market taker' is the customer of a market maker.
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.


The market taker suffers the worse side of the two-way prices quoted by the market maker.
In the case of widely traded assets, the market value may be a readily observable quoted market price.


This compensates the market maker for their risk, skill and expenses in making a market.
== See also ==
* [[Book value]]
* [[Deep discount issue]]
* [[Discounted income model]]
* [[Face value]]
* [[Intrinsic value]]
* [[Mark to market basis]]
* [[Market price]]
* [[Market rate]]
* [[Market value added]]
* [[Market/book ratio]]
* [[Shareholder value]]
* [[Value]]


==See also==
*[[Market maker]]
*[[Two-way price]]

Revision as of 14:20, 23 October 2012

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, the market value may be a readily observable quoted market price.

See also