What is Current Market Value?

Market value refers to the social value of commodities formed by the socially necessary labor time consumed by the production sector. Market value refers to the price of an asset on the trading market. It is a price that is acceptable to both parties after bidding by the voluntary buyer and the voluntary seller without any coercion.

Market value

Market value, which refers to

Commodities formed by competition among enterprises within the production sector

First, voluntary buyers. Refers to a party who has a motive for purchase but is not compelled to make a purchase. The purchaser will purchase according to the actual situation of the current market and the expected value of the current market, and will not be particularly eager to buy, nor will he decide to buy at any price, that is, he will not pay a higher price than the market price. Rational buyer.

Second, the voluntary seller. Refers to a party that is neither prepared to sell or be forced to sell at any price, nor will it continue to hold assets in anticipation of obtaining a price deemed unreasonable by the current market. Voluntary sellers expect to sell assets at the highest price achievable in the open market based on market conditions after necessary marketing.

Third, the base date for evaluation. The market value is the point-in-time value of a specific date, and only reflects the real market conditions and conditions on the evaluation base date, not the market conditions and conditions before or after the evaluation base date.

Fourth, it is expressed in monetary units. Market value is the price paid for an asset in a fair market transaction, usually in local currency.

Fifth, fair trade. Refers to transactions between parties that do not have a specific or special relationship, that is, transactions between parties that are assumed to be independent and independent.

Sixth, the assets have sufficient display time in the market. Means that the asset should be displayed in the market in the most appropriate way. The specific display time of different assets should be different according to the characteristics of the asset and market conditions, but the display time should enable the asset to attract the attention of a sufficient number of potential buyers. . Terms in the USPAP regarding the display period.

Seventh, both parties are smart and cautious. It means that both the voluntary buyer and the voluntary seller have reasonable knowledge of the nature and characteristics of the asset, its actual use, potential use, and the market conditions on the assessment base date, and assume that the parties make decisions based on the above knowledge for their own interests, and proceed with caution to obtain Get the best price yourself.