Price, Value and Market Price
BeginnerB-005
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Join →Price and value are related but not identical concepts. Value is an assessment of what an asset may be worth based on relevant information, assumptions, cash flows, utility, or other factors. Market price is the price at which transactions are currently taking place. The market price can differ from our estimate of value, and that difference is one reason analysis exists. A trader must learn to distinguish what the market is pricing now from what we believe the asset may be worth.
Key Terms
- Price, Value and Market Price — the core concept introduced in this lesson.
