Fair price


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Fair price

The equilibrium price for futures contracts. Also called the theoretical futures price, which equals the spot price continuously compounded at the cost of carry rate for some time interval. In the context of corporate goverance, Fair-Price provisions limit the range of prices a bidder can pay in two-tier offers. They typically require a bidder to pay to all shareholders the highest price paid to any shareholder during a specified period of time before the commencement of a tender offer and do not apply if the deal is approved by the board of directors or a supermajority of the target's shareholders. The goal of this provision is to prevent pressure on the target's shareholders to tender their shares in the front end of a two-tiered tender offer, and they have the result of making such an acquisition more expensive. A majority of states have fair price laws.

Fair Market Value

A subjective estimate of what a willing buyer would pay a willing seller for a given asset, assuming both have a reasonable knowledge of the asset's worth. Fair market value is important in both law and accounting. In the former, it is often used in assessing damages as the result of a lawsuit. In the latter, determining the fair market value of an asset (e.g. after depreciation) is important to determining the amount of tax owed on it.
References in periodicals archive ?
The Delhi government has allowed Fair Price Shops to sell all goods and services except eight categories of prohibited items.
The FUW and the Wales Fair Trade Forum formally teamed up to promote fair prices for food producers in Wales and throughout the developing world at the 2008 Royal Welsh Winter Fair - shortly after Wales was officially declared the first-ever Fair Trade Nation.
Demarolle, who did not mention how much of Brisa Alura owns, told Bloomberg that CMVM was determined to protect Brisa's minority shareholders and to ensure they get a fair price for their stock.
He clarified that the factors that drive up oil prices add more than USD 20 to the oil barrel; however, if the deciding factor for oil prices was solely left to demand and supply then the oil barrel would be priced at USD 100; a fair price for both producers and consumers.
It will also seek ways to establish a fair price for gas under a gas-to-oil indexation with the objective to overcome the disparity between crude oil and gas prices, the organisers said.
But in a thoughtful paper subtitled "Fair Price Pronouncements and the Market Price of Crude Oil", Bahattin Buyuksahin and other researchers working at the US Commodity Futures Trading Commission concluded pronouncements by Opec members including Saudi Arabia about fair prices have little influence on actual prices, and supply little or no news to market participants.
Sir, Alistair Smith is absolutely right when he says "67p per kg is not a fair price for bananas" ('Ethics: the first casualty in the new banana price war?
12 -- The four sasta bazaars and 35 fair price shops, set up by Islamabad Capital Territory Administration in capital's rural and urban areas, have started operations to ensure sale of necessary food items at reduced rates during Ramazan.
But it is possible that today a fair price would be even shorter because of the distinctive characteristics of both Gannon and Motherwell.
com faults: 12 Used Car Expert price guide: A fair price for a 2008 Saab 9-3 1.
com faults: 10 Used Car Expert price guide: A fair price for a 2008 Mazda 3 1.
If Real Madrid have paid so much money, it's because they wanted me and have considered it a fair price.