market value
Market value is the 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. 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. Market value should not be confused with fair value, which is the value of some good or service ascertained without bias, and independ of any market pricing, usually because there is no active market for that item.
[Last reviewed in August of 2026 by the Wex Definitions Team]
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