market price: meaning, definition, pronunciation and examples
HighFormal to Neutral. Common in business, economics, finance, journalism, and everyday commerce.
Quick answer
What does “market price” mean?
The current price at which an asset or service can be bought or sold in a particular marketplace, determined by the balance of supply and demand.
Audio
Pronunciation
Definition
Meaning and Definition
The current price at which an asset or service can be bought or sold in a particular marketplace, determined by the balance of supply and demand.
Beyond immediate commerce, the concept refers to the accepted value of something within a specific context or system (e.g., the 'market price' of one's skills in the job market). It implies a dynamic, non-fixed valuation subject to change.
Dialectal Variation
British vs American Usage
Differences
No significant difference in meaning. 'Market rate' is a very close synonym used slightly more often in certain contexts (e.g., salaries, rents) in both varieties.
Connotations
Equally neutral in both varieties. Slightly more formal than simply 'price.'
Frequency
Equally common in both UK and US English within relevant domains.
Grammar
How to Use “market price” in a Sentence
The market price FOR [commodity] rose.The market price OF [asset] fell.To buy/sell AT market price.To value something AT market price.Vocabulary
Collocations
Examples
Examples of “market price” in a Sentence
verb
British English
- The shares were market-priced by the independent valuer.
- We need to market-price the property realistically.
American English
- The consultant will market-price the collection for the insurance claim.
- The software helps you market-price your used textbook.
adverb
British English
- The bonds were trading market-price, as expected.
American English
- They agreed to sell the livestock market-price.
adjective
British English
- The market-price data feed is essential for traders.
- They offered a market-price adjustment clause in the contract.
American English
- We subscribed to a market-price analysis service.
- The market-price mechanism failed due to lack of competition.
Usage
Meaning in Context
Business
Essential for contracts, valuations, and financial reporting. E.g., 'Inventory must be valued at the lower of cost or market price.'
Academic
Core concept in economics and finance papers. E.g., 'The model predicts a deviation from the efficient market price.'
Everyday
Used when discussing house prices, car values, or costs of goods. E.g., 'We sold the sofa for the market price on eBay.'
Technical
Precise term in commodity trading, real estate appraisals, and accounting standards (like mark-to-market).
Vocabulary
Synonyms of “market price”
Vocabulary
Antonyms of “market price”
Watch out
Common Mistakes When Using “market price”
- Using 'market price' for a fixed menu item in a restaurant (correct: 'market price' or 'MP' is standard). Confusing it with 'retail price' (which is a specific type of market price). Using it as a verb.
FAQ
Frequently Asked Questions
They are very close. 'Market price' is the actual transaction price. 'Market value' is an estimate of what the price *should* be in an open market, often used for assets not frequently traded.
Yes, absolutely. It is commonly used for professional services (e.g., legal fees, consultancy), labour (market price for skilled welders), and rentals.
It stands for 'Market Price,' indicating that the cost of that dish (usually seafood or seasonal specials) varies daily based on the wholesale cost to the restaurant.
It is determined by the last price agreed upon between a buyer and a seller on a stock exchange, reflecting the continuous auction of supply and demand for that share.
The current price at which an asset or service can be bought or sold in a particular marketplace, determined by the balance of supply and demand.
Market price is usually formal to neutral. common in business, economics, finance, journalism, and everyday commerce. in register.
Market price: in British English it is pronounced /ˈmɑːkɪt praɪs/, and in American English it is pronounced /ˈmɑːrkɪt praɪs/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “To be at a premium (above market price)”
- “To go for a song (far below market price)”
- “To pay over the odds (above market price)”
Learning
Memory Aids
Mnemonic
Imagine a bustling MARKET where the PRICE tag on every item changes every minute based on how many people want to buy or sell it. That's the MARKET PRICE.
Conceptual Metaphor
PRICE IS A MOVING OBJECT (fluctuates, rises, falls, soars, plunges); THE MARKET IS A FORCE OF NATURE (dictates, determines, sets the price).
Practice
Quiz
Which of the following is LEAST likely to be described using the term 'market price'?