economy

definition of market value

The market value is that amount that is assigned to a certain good or product, understanding as such that sum of money that a seller could obtain for it under standard conditions of a stock market.

In economics, the economic or financial value of a product, good or service is determined according to different theories and various indicators. Among these, the market value is the net amount that a seller could receive for the sale of a movable or immovable property (or of another order) under normal conditions of economic transaction in the market. This is, assuming that the commercialization is favorable, that there is a buyer with economic potential and that both act freely and without particular interests.

As we said, for economic theory the value of a good can be, as Marxist theory understands it, the amount necessary for its production with a use value at a certain level of technological development. The price is derived from the value and then there are always fluctuations on it. Neco-classical theories, on the contrary, understand value as a subjective indicator that has more to do with the valuation of the consumer public for the good. In other words, the market value of a good should not necessarily be related to the cost of production, but is freely determined by economic fluctuation and the degree of interest of the buyer.

Be that as it may, the market value is usually a fluctuating value, insofar as it depends on various variables that are in constant alteration. Among them, it is interdependent with the evolution of a particular economy, for example, the existing inflation and devaluation values. At a given moment, in addition, one object may have more value than another (for example, precious stones), while with the evolution and progress of world economies it may lose its market exchange value.

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