Cost basis is the original monetary value of an item or asset when it was purchased. It is usually used as a point of reference for calculating financial gain or loss when selling the item or asset. Market value, on the other hand, reflects the current worth of an item or asset. This number can differ significantly from the cost basis depending on factors such as inflation and market demand. So, when considering the sale of any item or asset, it is important to remember that the market value will be the true measure of potential gain or loss. Knowing both your cost basis and market value can help you make smart financial decisions!