Fair market price

Also found in: Dictionary, Acronyms.

Fair market price

Amount at which an asset would change hands between two parties, where both have knowledge of the relevant facts. Also referred to as market price.

Fair Market Price

What a willing buyer pays a willing seller for a given asset. In a perfectly efficient market, fair market prices are determined by the law of supply and demand and no other factors. In securities, the fair market price is the price of the most recent transaction of that security. Open markets and capitalism, in general, can only exist if prices are set by the market, at least most of the time. See also: Fair Market Value, Invisible Hand.
References in periodicals archive ?
For instance, a 50 per cent sale to the provider giving your heirs first refusal on repurchasing the provider's stake in the house at a fair market price can be set up if you and the family want that.
The Halifax claims it is offering a fair market price for the Midshires, and points out that its bid is about pounds 100million higher than the Royal Bank of Scotland had earlier been prepared to pay.
Cricket's bosses in this country were being hamstrung by their enforced inability to negotiate a fair market price for their primary product.
We believe that certain sporting events are of such great national interest that they should be available to the entire viewing public, with the rights negotiated at a fair market price.
Most utilities will sell customers the equipment that is already in place at a fair market price.
First, if no open market exists, the taxpayer must use such evidence of a fair market price at the date or dates nearest the inventory as may be available, such as specific purchases or sales by the taxpayer or others in reasonable volume and made in good faith.
We could buy their home at an independently valued, fair market price and the move could take just one month.
The organisation, which campaigns for a fair market price for Third World farmers, scooped the Queen's Award for Enterprise.
The very least these developers could do is offer a fair market price for the properties.
With an approach to purchasing that consists mostly of monthly auctions, it is becoming increasingly more difficult for scrap consumers to attempt to determine a fair market price.

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