fair market value

noun

Definition of fair market value

: 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

When an employee leaves Hell’s Kitchen, the company will pay them the fair market value for their earned shares. — Jess Fleming, Twin Cities, "Minneapolis restaurant Hell’s Kitchen is selling — to its employees," 15 Sep. 2019 Further Reading Nightmarish transition from Verizon to Frontier has no end in sight Goodwill is the fair market value of a company, excluding its assets. — Jon Brodkin, Ars Technica, "ISP Frontier is failing so badly it won’t take questions from investors," 7 Aug. 2019 The Internal Revenue Service can impose penalties if top officials and their families receive economic benefits that exceed fair market value. — oregonlive.com, "NRA money flowed to board members amid allegedly lavish spending by top officials and vendors," 10 June 2019 The definition of fair market value has been controversial, and McKee said the compensation package needed to improve if officers wanted more participation from gun owners. — Charlotte Graham-mclay, BostonGlobe.com, "New Zealand begins gun buyback prompted by mosque massacres," 13 July 2019 The regents said there were two independent appraisals that found $85 per square foot was a fair market value, the filing said. — Rachel Leingang, azcentral, "Judge: Arizona attorney general's lawsuit against ASU hotel deal can proceed, for now," 2 July 2019 Those changes, adopted as part of the Music Modernization Act (MMA), will likely result in ASCAP and BMI rate courts setting rates that more closely approximate fair market value. — Ed Christman, Billboard, "US Dept. of Justice Reviewing ASCAP & BMI Consent Decrees," 5 June 2019 But even that move didn’t provide enough cap relief for the Sharks to sign Pavelski to a contract that was close to fair market value. — Curtis Pashelka, The Mercury News, "Joe Pavelski expected to sign with Dallas Stars on Monday," 30 June 2019 Owning Looney’s Bird rights, the Warriors can offer him fair market value in free agency this summer. — Rusty Simmons, SFChronicle.com, "Warriors struggle at center with Kevon Looney sidelined in Game 3," 6 June 2019

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'fair market value.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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Last Updated

19 Sep 2019

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The first known use of fair market value was in 1891

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More Definitions for fair market value

fair market value

noun

Financial Definition of fair market value

What It Is

Fair market value is the price at which a willing seller sells a good or service to a willing buyer.

How It Works

Let's assume John Doe wants to sell his house. He lists it for $750,000. Jane Dale wants to buy a house. She sees John's house for sale and offers him $675,000. The two negotiate the price and agree on $700,000. Because it is the price John and Jane agree to, the fair market value of the house is $700,000.

Why It Matters

People often feel that houses, art, stocks, bonds and other items are "worth" a certain amount on the market, but the only true measure of worth -- the fair market value -- is the price at which someone is willing to sell and someone is willing to buy.

Source: Investing Answers

fair market value

noun