Definition of Market Value

The market value is that amount that is assigned to a specific good or product, understood as such that sum of money that a seller could obtain for himself under standard conditions of a market of values.

In the economy, 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 that net amount that a seller could receive for the sale of a movable or immovable property (or of another order) in normal conditions of transaction economical in the market. That is, assuming that the commercialization is conducive, 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 the production of the same 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. Necoclassic theories, on the contrary, understand value as an indicator

subjective which is more related to the valuation of the consumer public by the good. In other words, the market value of a good must 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 values ​​of inflation and existing devaluation. At any given time, in addition, one object may either have more value than another (for example, precious stones), while with the evolution and the progress of world economies may lose its value of exchange in market.

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