Investor Glossary-fair market valueInvestor Glossary-fair market valueInvestor Glossary-fair market valueInvestor Glossary-fair market valueInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Fair Market Value

The HTML to link to this page
 

The fair market value of a stock or similar commodity is the price which an informed buyer would be willing to pay, and a seller would be willing to sell. Hypothetically, fair market value is determined by open market consensus between buyers and sellers who each have full knowledge of the property being sold. In reality, fair market value is often established by buyers and sellers who each have different and (often) incomplete knowledge. Fair market value is often used for tax purposes; fair market value on the date of death may be used to establish a later tax basis for any heirs. For stocks, fair market value is often determined by applying closing prices on a selected day to a portfolio. Fair market value can also be used to help establish an investor's net worth.



Rate this fair market value definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: real GDP, per diem, APR, open position, ex-dividend date, current ratio, VIX, Zero Cost Collar, reverse mortgage, option premium, LIBOR, 1031 exchange, risk management, phantom income, cancelled check, FICO score, command economy, wholly-owned subsidiary, dividends payable, EBITDA, stock market close, balance sheet, deferred revenue, minority interest, irrevocable trust, deferred tax, required rate of return, 144a, FTSE, in escrow, limit order, stock split, implied volatility, debt service coverage, annual return, labor relations, quality assurance, ex-dividend, average price per share, inflation, 401a, 1035 exchange, class C shares, diluted share, margin rate, Key Rate Duration, retained earnings, liquidity ratio, covered put


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use