The "market price" or also "price" is the current price at which a financial instrument, such as a stock, options, bonds or commodity, is trading in the market. It is determined by the forces of supply and demand, with buyers and sellers negotiating prices based on their perceptions of the instrument's value.
The market price can be influenced by a wide range of elements such as psychological factors like company news, economic indicators, political events, and global trends, in the other hand financial factors are equally important especially in the long term such as revenue growth, profitability, generating cash flow from operations or debt level.
Investor John Smith is interested in buying Amazon.com Inc. shares on a NASDAQ, ticker: AMZN.
Let’s say that the current market price of Amazon.com Inc. stock is $95 per share. This means that buyers are willing to pay up to $95 per share, and sellers are willing to sell their shares for at least $95 per share. If Mr. Smith wants to buy 100 shares, he would need to pay the market price of $95 per share, or a total of $9,500.