Statistical Terms Glossary

Market prices are the actual price agreed upon by the transactors. In the absence of market transactions, valuation is made according to costs incurred (non-market services produced by government) or by reference to market prices for analogous goods services (services of owner-occupied dwellings).

A market producer is a corporation that is created for the purpose of producing goods or services for sale on the market at prices that are economically significant.

Market producers are local kind-of-activity units (KAUs) or institutional units the major part of whose output is market output.

Market producers are producers that sell most or all of their output at prices that are economically significant

Lending at market rate and under market conditions (cf. commercial lending).

The risk of losses on financial instruments arising from changes in market prices. Market risk covers interest-rate, foreign exchange, equity price, and commodity-price risk. As financial intermediaries that take positions in financial instruments, such losses in value affect the income and capital of deposit-takers. The duration of assets and liabilities can be used to estimate potential losses arising from changes in market interest rates. Another approach is through the use of stress tests.

Market share is a measure of the relative size of a firm in an industry or market in terms of the proportion of total output or sales or capacity it accounts for. In addition to profits, one of the frequently cited business objectives of firms is to increase market share. Market share, profits and economies of scale are often positively correlated in market economies. High levels of market share may bestow market power on firms.

Market tightness is a dimension of market liquidity. It is measured by the general cost incurred in a transaction irrespective of market price.

Amounts of money that willing buyers pay to acquire something from willing sellers; the exchanges are made between independent parties on the basis of commercial considerations only. The market value of a debt instrument should be based on the market price for that instrument prevailing at the time to which the position statement refers; that is, current market prices as of the dates involved (beginning or end of the reference period).

The price at which an asset would change hands if it sold on the open market.

Marketable securities are securities that can easily be sold. On a corporation’s balance sheet , they are assets that can be readily converted into cash - for example, government securities, banker’s acceptances and commercial paper. (Dictionary of Finance and Investment Terms , J. Downes and J.E. Goodman)

Market-based instruments seek to address the market failure of 'environmental externalities' either by incorporating the external cost of production or consumption activities through taxes or charges on processes or products, or by creating property rights and facilitating the establishment of a proxy market for the use of environmental services.

Increased reliance of banks on funds obtained either from financial markets directly or from clients, but where the interest rates are set by reference to market-determined rates.

Business approach or philosophy that focuses on identifying and meeting the stated or hidden needs or wants of the customers, through its own or acquired products.

The process of recalculating the exposure in a trading position in securities, option contracts or futures contracts. In exchange-traded contracts, the exchange clearing house marks members' positions to market each day using closing market prices. Members must maintain a certain minimum level of margin at the exchange clearing house and must post additional margin if the marking-to-market process reduces margin below the minimum.

The act, ceremony or process by which the legal relationship of husband and wife is constituted. The legality of the union may be established by civil, religious or other means, as recognized by the laws of each country.