Investing term
What is Market price?
What buyers and sellers are agreeing on right now — the last printed trade.
Market price is what buyers and sellers are agreeing on right now — the price of the most recent trade. It's not the same as value: it reflects the crowd's current mood, which can swing far above or below what a business is actually worth. The whole opportunity in investing comes from those gaps between fleeting market price and durable value.
For example
A stock's market price might lurch from $50 to $42 on a single nervous day, even though nothing about the underlying business changed.
Market price is taught hands-on in Stage 15 — Valuation for Investors.
See the lesson →