Market Value

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A phrase generally used in reference to an objective fair price or value attainable for a good through an arm’s-length transaction in the marketplace, typically concerning the sale of property or services rendered (see: fair market value). In property law, when the government engages in a physical or regulatory taking of property it is required to provide just compensation, which is typically its fair market value. Not to be confused with fair value, which is the value of some good or service ascertained without bias and independently of any market pricing for it, usually because there is no active market for that item.

[Last updated in June of 2020 by the Wex Definitions Team]