Definition of the word market value

The term "market value" can be traced back to the 17th century when commodities were traded in open markets. The concept refers to the price that a particular product or asset could fetch in a competitive market, given the prevailing supply and demand conditions. In simpler terms, market value is the price that a willing buyer would pay for an asset to a willing seller in an active and free market. The term is commonly used in the context of real estate, stocks, and mutual funds to indicate the current price at which the asset can be sold or bought. Thus, the market value of a property, for instance, would be the price that it could fetch in the current real estate market, as determined by comparable sales and other relevant factors. The concept of market value has become a central pillar of financial and economic analysis, as it helps in determining the fair price of assets, assessing investments, and calculating taxes.