Market participant: Difference between revisions

From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson
(Create the page. Source: IFRS 13, page A630.)
 
imported>Doug Williamson
(Link with IFRS 13 page.)
Line 13: Line 13:
== See also ==
== See also ==
*[[Fair value]]
*[[Fair value]]
*[[IFRS 13]]
*[[Market maker]]
*[[Market maker]]
*[[Market taker]]
*[[Market taker]]

Revision as of 15:58, 26 July 2015

For financial reporting and fair valuation purposes, market participants are strictly defined as:

Buyers and sellers in the principal (or most advantageous) market for the asset or liability being fair valued that have all of the following characteristics:

  1. They are independent of each other.
  2. They are knowledgeable, having a reasonable understanding about the relevant asset or liability and the transaction using all available information, including information that might be obtained through due diligence efforts that are usual and customary.
  3. They are able to enter into a transaction for the asset or liability.
  4. They are willing to enter into a transaction for the asset or liability, i.e. they are motivated but not forced or otherwise compelled to do so.


Defined more broadly, a 'market participant' is a company, a person or any other entity participating in a market.


See also