- price at which the seller and the buyer agree to trade on the open market.
- 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.
In general: recent price agreed upon by buyers and sellers of a product or service, as determined by supply and demand.
Finance: last reported price at which a security was sold.
last reported price at which a security was sold on an exchange. For stocks or bonds sold Over The Counter, the combined bid and offer prices available at any particular time from those making a market in the stock. For an inactively traded security, evaluators or other analysts may determine a market price if needed-to settle an estate, for example.
In the general business world, market price refers to the price agreed upon by buyers and sellers of a product or service, as determined by supply and demand.
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.
