fair market value

noun

: a price at which buyers and sellers with a reasonable knowledge of pertinent facts and not acting under any compulsion are willing to do business

Examples of fair market value in a Sentence

Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Once vested, exercising the options triggers taxation on the difference between the fair market value of the shares at the time of exercise and the option strike price. Virginia La Torre Jeker, Forbes.com, 7 May 2025 Practically, however, a creditor should almost be willing to accept the fair market value of the interest (and often much less). Jay Adkisson, Forbes.com, 27 Apr. 2025 However, in almost one-third of states, including California and New York, annually spending more than 7% of an endowment’s fair market value, measured by a three-year average, is presumed to be imprudent. Ellen P. Aprill, The Conversation, 21 Apr. 2025 The Premier League analysed the hotel sales for fair market value, making a slight adjustment to Chelsea’s profit in terms of the PSR calculation. Oliver Kay, New York Times, 11 Apr. 2025 See All Example Sentences for fair market value

Word History

First Known Use

1891, in the meaning defined above

Time Traveler
The first known use of fair market value was in 1891

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Cite this Entry

“Fair market value.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/fair%20market%20value. Accessed 23 May. 2025.

Legal Definition

fair market value

noun
: a price at which buyers and sellers both having reasonable knowledge of the property and being under no compulsion are willing to do business

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