Investor Glossary-fair valueInvestor Glossary-fair valueInvestor Glossary-fair valueInvestor Glossary-fair 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 Value

The HTML to link to this page
 

Fair value is a market price that both the buyer and the seller, neither under duress, will accept for the good or service they're transacting. Fair value is the price at which supply and demand meet. Fair value not only assumes that neither the buyer nor the seller are in any way forced to make the transaction; fair value also assumes that both the buyer and the seller have reasonable knowledge of relevant facts. Fair value reflects the price at which a seller is willing to part with his item in exchange for money and a buyer is willing to part with her money in exchange for the item. Fair value does not necessarily reflect an item's intrinsic worth (e.g. the value of the materials used to make the item). An item's fair value is based on a comparable market analysis (in other words, an item's fair value is determined by the price at which similar items recently sold for).



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


Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # 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 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
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2013 Investor Glossary - All rights reserved - Terms of Use