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


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use