fair value Definition

InvestorWords.com

fair value

Definition 1

A valuation, in accordance with standard methodology, that is reasonable to all parties involved in a transaction in light of all pre-existing conditions and circumstances.

Definition 2

In the case of futures, the sum of the value of the underlying securities and the cost of carry (interest earned due to not holding the underlying minus dividends lost due to not holding the underlying).

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Related terms:

fair market value, stock rating, purchase method

'fair value' appears in the definitions of these other terms on BusinessDictionary.com:

implied contract, liquidity risk

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