What Is Market Price? The market price is the current price at which an asset or service can be bought or sold. The market price of an asset or service is determined by the forces of supply and demand. The price at which quantity supplied equals quantity demanded is the market price. The market price is used
What Is a Market Proxy? A market proxy is a broad representation of the overall stock market. A market proxy can serve as the basis for an index fund or statistical studies. The S&P 500 index is the best-known market proxy for the U.S. stock market. Index funds and exchange traded funds (ETFs) have been
What Is Market Research? Market research, also known as “marketing research,” is the process of determining the viability of a new service or product through research conducted directly with potential customers. Market research allows a company to discover the target market and get opinions and other feedback from consumers about their interest in the product
What Is Market Risk? Market risk is the possibility that an individual or other entity will experience losses due to factors that affect the overall performance of investments in the financial markets. Key Takeaways Market risk, or systematic risk, affects the performance of the entire market simultaneously.Market risk cannot be eliminated through diversification.Specific risk, or unsystematic
What Is Market Risk Premium? The market risk premium (MRP) is the difference between the expected return on a market portfolio and the risk-free rate. The market risk premium is equal to the slope of the security market line (SML), a graphical representation of the capital asset pricing model (CAPM). CAPM measures the required rate
What Are Market Cycles? Market cycles, also known as stock market cycles, is a wide term referring to trends or patterns that emerge during different markets or business environments. During a cycle, some securities or asset classes outperform others because their business models are aligned with conditions for growth. Market cycles are the period between
What are Market Indicators? Market indicators are quantitative in nature and seek to interpret stock or financial index data in an attempt to forecast market moves. Market indicators are a subset of technical indicators and are typically comprised of formulas and ratios. They aid investors’ investment/trading decisions. Key Takeaways Market indicators are quantitative in nature
What Is Market Swoon? Market swoon is a buzzword for a dramatic, sudden decline in the overall value of the stock market. A broader event than a downtick or a downswing, a market swoon refers to the behavior of a market as a whole. Market swoon is a colloquial idiom used in the popular press to
What Are Marketable Securities Marketable securities are liquid financial instruments that can be quickly converted into cash at a reasonable price. The liquidity of marketable securities comes from the fact that the maturities tend to be less than one year, and that the rates at which they can be bought or sold have little effect
What Is Market Access? Market access refers to the ability of a company or country to sell goods and services across borders. Market access can be used to refer to domestic trade as well as international trade, although the latter is the most common context. Market access is not the same as free trade. The ability
