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7 Examples of Market Value

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Market value is the price of an asset or good that can be expected in a fair, open and competitive market where buyers and sellers participate freely. The following are illustrative examples.

Supply & Demand

Market value is driven by supply and demand. Increases in demand increase market value. Increases in supply decrease market value. For example, if home builders increase supply of new homes by 700% in an area this would drive prices down unless demand also increases.

Public Markets

A public market is a market that is open and accessible to the public such as a stock market. Prices on a liquid public market are considered a prime example of a market value. For example, a stock market with thousands of buyers and sellers of a stock competing at the same time to achieve the best price.

Perfect Information

Market value assumes that buyers and sellers are both in possession of the facts that are relevant to a transaction. For example, if insiders sell a stock because they know there is a problem at a company before investors, this may not be considered a market value for the stock.

Arms Length Transaction

Market value assumes that buyers and sellers have no relationship that could influence price. For example, if the CEO of a company buys assets from her company this would not be considered a market price unless the asset was put up for sale to the public with the CEO offering the highest price from multiple bidders.

Fair Market Price

Fair market price is a reasonable estimate of market price that is used for legal, accounting and tax purposes. For example, a CEO might buy an asset from a company at a fair market price based on independent and reputable assessments of a reasonable market value.

Reference Prices

Reference prices are data about recent prices that are used to estimate a fair market price. For example, data for home sales may be compiled to create reasonable estimates of the market price for homes based on market conditions, location, size, type, features and other factors.

Appraisal

An appraisal is a formal opinion of a fair market price formed by an expert in a particular market. This may make use of reference prices, models and other formal methods. Alternatively, it may be based on the expert judgement of an individual based on their experience.
Overview: Market Value
Type
Definition
The price of an asset or good that can be expected in a fair, open and competitive market where buyers and sellers participate freely.
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Value
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Price Economics

A list of price economics principles and theories.

Willingness To Pay

A list of factors that influence willingness to pay.

Sticky Prices

Prices that stick to an established range and resist changing economic forces such as inflation.

Commoditization

A definition of commoditization with examples.

Too Cheap To Meter

A definition of too cheap to meter with examples.

Relative Price

The definition of relative price with examples.

Dumping

An overview of dumping with an example.

Value vs Price

The difference between value and price with examples.

Competitive Market

A complete overview of competitive markets with examples.

Value

The five common definitions of value with an example.

Value In Marketing

The definition of value with marketing examples.

Economic Value

The definition of economic value with examples.

Types Of Value

The common types of value.

Value Chain

An overview of value chains with complete examples.

Intangible Things

The definition of intangible with examples.

Tangible

The definition of tangible with examples.

Value Opposite

A list of opposites of value.
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