Monday, January 3, 2011

Market Price

The market price is the price at which a trade last occurred in the security in question (i.e. it was the price at which the previous buy and sell order were matched). The market price gives an indication of what price you can buy or sell the security, however as liquidity conditions will have an impact, a better indicator is the current bid and offer prices. The market price is also used for calculating market capitalization.

Synonyms: Price, Current price

If you have any further questions or would like to add to this fund management term, then please submit your thoughts below.

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