Arm's length price

Definition:

The price at which a willing buyer and a willing unrelated seller would freely agree to transact or a trade between related parties that is conducted as if they were unrelated, so that there is no conflict of interest in the transaction.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Tenants by Entireties (TEN ENT)

Joint ownership of property or securities by a husband and wife where, upon the death of one, the property goes to the survivor.

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