We use cookies to improve security, personalize the user experience,
enhance our marketing activities (including cooperating with our marketing partners) and for other
business use.
Click "here" to read our Cookie Policy.
By clicking "Accept" you agree to the use of cookies. Read less
Market Quotation Explained: Legal Insights and Implications
Definition & Meaning
Market quotation refers to the current prices of commodities or securities that are actively traded on exchanges, such as stock exchanges or boards of trade. These quotations provide a snapshot of what buyers are willing to pay and sellers are willing to accept at a given time. However, it's important to note that the market quotation does not always reflect the fair market value of a security or commodity, which can differ based on various factors.
Table of content
Legal Use & context
Market quotations are commonly used in financial and investment law, particularly in transactions involving stocks, bonds, and other securities. They play a crucial role in determining the value of investments and are often referenced in legal documents related to trading, investment agreements, and financial disclosures. Users can manage some aspects of these transactions using legal templates available through services like US Legal Forms.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
For instance, if a stock is quoted at $50 on a stock exchange, this means that the last recorded price at which the stock was bought or sold was $50. However, the fair market value may be higher or lower depending on the company's performance and market conditions. (Hypothetical example).
State-by-state differences
Examples of state differences (not exhaustive):
State
Market Quotation Regulations
California
Strict regulations on securities trading and disclosures.
New York
Home to major stock exchanges with specific reporting requirements.
Texas
Less stringent regulations but still adheres to federal standards.
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Differences
Market Value
The price at which an asset would trade in a competitive auction setting.
Market quotation is a specific price at a given time, while market value is broader and can fluctuate.
Fair Market Value
The price that a willing buyer and seller would agree upon in an open market.
Fair market value considers more factors than just the current market quotation.
Common misunderstandings
What to do if this term applies to you
If you are involved in buying or selling securities, it's essential to understand market quotations. You can use US Legal Forms to find templates for investment agreements and other related documents. If your situation is complex, consider consulting a legal professional for tailored advice.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.