Market Price

Market Price
The current price at which an asset or service can be bought or sold. 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 and/or demand side can cause the market price for a good or service to be re-evaluated.

For example, suppose that the market price for a widget has been $10 for a number of years. Suddenly, the market price shifts to $20 when it is announced that only half of this year's widgets will be sold in stores. In this case, a drop in supply causes the market price to increase.

In regard to stocks, the market price of a stock is the most recent price at which the stock was traded. It does not guarantee that an investor will receive the same price upon buying the stock afterward. For example, suppose that a company's stock has been halted from trading because it was planning to release some material news in the next hour. While the market price of the stock at the time will be the last price at which the stock traded, buying the stock when trading resumes will definitely yield a different price.


Investment dictionary. . 2012.

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Look at other dictionaries:

  • market price — n 1: the price at which a security is currently selling on the market 2: market value (1) Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • market price — n. the price that a commodity brings when sold in a given market; prevailing price …   English World dictionary

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  • market price — n the price of something on a ↑market at a particular time …   Dictionary of contemporary English

  • market price — noun count or uncount BUSINESS the price that a product can be sold for at a particular time …   Usage of the words and phrases in modern English

  • Market price — In economics, 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… …   Wikipedia

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  • market price — The price at which a seller is ready and willing to sell and a buyer ready and willing to buy in the ordinary course of trade. The price actually given in current market dealings; price established by public sales or sales in the way of ordinary… …   Black's law dictionary

  • market price — The price at which a seller is ready and willing to sell and a buyer ready and willing to buy in the ordinary course of trade. The price actually given in current market dealings; price established by public sales or sales in the way of ordinary… …   Black's law dictionary

  • market price — noun a) The price at which a product, financial instrument, service or other tradable item can be bought and sold at an open market; the going price. The actual price at which any commodity is commonly sold is called its market price. It may… …   Wiktionary

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