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 ?
If one of the majors wishes to open a major c-store, it should offer to buy the goodwill of any small c-store within its catchment area at a fair market price.
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.
To get the land, the city is considering using eminent domain, whereby the government can claim it in return for a fair market price.
Without being able to negotiate a fair market price for the Sports Illustrated building, the Durst Organization had no choice but to discontinue management of the property, said a company spokesman last week.
502-2(b) (the so-called rule of two), which requires an agency to set aside acquisitions for small businesses where there is a reasonable expectation of receiving fair market price offers from at least two responsible small business concerns.
If it is, the Crown will retain the piece but the two men will be recompensed with a fair market price.
The option price must not be less than the stock's fair market price on the date the option is granted.
Once again people with disabilities dispelled any doubts that they were able-able to meet the expedited delivery demands, able to produce quality goods and able to do so at a fair market price.
NTT DOCOMO had exercised its right to request in July, 2014 and directed the Tatas to locate an appropriate purchaser to buy its TTSL stake for half of the acquired price, amounting to Rs 7,250 crore, or a fair market price, whichever is higher.
The competitive auction process ensures a fair market price," said Crosby.
Chairman Professor Norman Palmer said: "The task of valuing this hoard required the committee to analyse a very large amount of information in order to arrive at a fair market price.

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