Fair market price

Definition:

Amount at which an asset would change hands between two parties, where both have knowledge of the relevant facts. Also referred to as market price.

Investing Essentials


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

Term of the Day

Historical Cost Accounting Convention

An accounting technique that values an asset for balance sheet purposes at the price paid for the asset at the time of its acquisition.

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