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 ?
This ruling posture underscores the need to submit detailed comments on this issue, particularly concerning the use of transfer-pricing concepts as a surrogate for fair market price in the application of Sec.
"My aunt owns an apartment in Beirut with old tenants paying about $20 per month while the fair market price is at least $600," a landlord's relative said on an internet forum dedicated to the issue.
It is providing farmers with a fair market price for their corn, reducing the price American's pay at the pump, and help tame America's addiction to oil.
"The result is many valuations coming in below the price agreed upon between the buyer and seller, by definition, a fair market price."
Professor Norman Palmer, chairman of the Governmentappointed valuation committee, said: "The task of valuing this hoard required the committee to analyse a very large amount of information to arrive at a fair market price.
OBJECTIVE: The owner has decided that raising a family AND owning and operating two locations is too heavy a load and has decided to sell to spend more time with family, if a fair market price can be achieved.
Consumers were willing to spend money in categories that delivered on the product promise, satisfying a deep-seated consumer need or want at a fair market price. Moving forward into 2009, this is a lesson well learned to remain competitive as the economy continues its downward spiral.For the full report by James Russo, VP of marketing, The Nielsen Company, click here: http://www.nielsen.com/consumer_insight/ci_story6.html
The Franco-Dutch group said it "strongly believes" that the transaction is not being conducted in the best interest of Austrian Airlines stakeholders and at a fair market price. Last month, AF KLM Chairman and CEO Jean-Cyril Spinetta said that the group was considering legal action after it emerged that LH obtained a [euro]500 million debt cancellation by the Austrian government as part of its acquisition of state holding company OIAG's stake in the Austrian flag carrier.
The town was then ordered to pay the fair market price to the investment group for the property if it wanted to buy it.
"We offer a fair market price to suppliers and the price in shops is competitive.
Now racecourses will be better placed to negotiate a fair market price for their pictures, although bookmakers' continued freedom to access terrestrial coverage exerts downward pressure on the price.
Peter Kryl, who represents PKRK LLC, a Eugene company that owns the building at 535 Main St., has said the company will consider selling for a "fair market price."

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