Legal Definitions - at-the-market price

At-the-market price refers to the current, prevailing price of an asset, such as a stock, bond, or commodity, as determined by the forces of supply and demand in an open and competitive market at a particular moment in time. It is the price at which buyers and sellers are willing to transact immediately, reflecting the most up-to-date valuation based on available information.

Here are some examples illustrating the concept of at-the-market price:

• Stock Trading: Imagine an investor wants to quickly sell 100 shares of Company X. Instead of setting a specific limit price, they place a "market order" with their brokerage. The broker will then execute the sale at the best available price on the stock exchangeat that exact moment. This constantly fluctuating price, determined by the immediate bids from buyers and offers from sellers, is the at-the-market price for Company X's shares.

• Commodity Sales: Consider a coffee farmer who has just harvested their beans and needs to sell them to a distributor. They would typically sell their coffee at the current "spot price" on the commodities exchange. This price, which changes throughout the day based on global supply, demand, weather patterns, and geopolitical events, represents the at-the-market price for that specific grade of coffee at the time of the transaction.

• Real Estate Valuation: A property owner needs to sell their commercial building quickly due to unforeseen circumstances. To achieve a fast sale, they might list the property at a price that closely aligns with recent comparable sales in the area and current buyer interest, rather than waiting for a potentially higher offer. The price at which the property is ultimately sold, reflecting what buyers are immediately willing to pay given current market conditions, is its at-the-market price.