market price


Definitions (4)

1.General: Unique price at which buyers and sellers agree to trade in an open market at a particular time. In formal markets (such stock exchanges) there are two market prices: the offer (selling) price which is higher, and bid (buying) price that is lower. The difference between these two price is called margin or spread.
2.Accounting: Transfer price of a good or service (traded between a subsidiary and its parent) at which the profit of the whole enterprise will be maximized.
3.Bond market: Last reported price exclusive of accrued interest, also called clean price.
4.Securities trading: Current market price as indicated by the latest recorded trade. See also market value.

Use market price in a sentence

  • The two food companies agreed on a market price together and they shook hands, making the agreement final and legitimate.

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  • Knowing what the fair market price for a product is will let you know if the deal you are seeing is to good to be true.

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  • This morning I checked the market price for my stock and found that it had moved into my buy range.

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