fair value

Definitions (2)

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.
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).

Use fair value in a sentence

You should always try and get fair value on any trade and not rush into it and get less than you should.

​ Was this Helpful? YES  NO 3 people found this helpful.

They were trading it at fair value and I was certainly happy with the price that was being offered for it.

​ Was this Helpful? YES  NO 10 people found this helpful.

The fair value amount was not agreed upon so a third party arbitrator or negotiator or mediator would need to become involved.

​ Was this Helpful? YES  NO 7 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
fair market value overvalued