Market value

Market value refers to the estimated worth of a business, asset, or a financial instrument in the marketplace. It represents the price at which an asset would trade in a competitive auction setting. Market value is fundamentally determined by the forces of supply and demand, where buyers and sellers agree on a price at which the asset will be exchanged. It is a crucial metric for investors and stakeholders as it provides insight into the economic value of a company or an asset, often influencing investment decisions and strategic planning. Understanding market value helps in gauging the potential profitability and risk associated with investments.