A term used in the futures market which would represent the cash price plus the net cost of carry. In the market it is the value derived from the mathematical equation used.

Value determined by the board of directors for those securities and assets which do not have a market quotation readily available, as stipulated in the Investment Company Act.

under GAAP, is the amount at which an asset could be bought or sold in a current transaction between willing parties, other than in liquidation. On the other side of the balance sheet, the fair value of a liability is the amount at which that liability could be incurred or settled in a current transaction between willing parties, other than in liquidation. [Go to source

The benchmark against which selling prices of imported merchandise are compared in a dumping investigation. In US practice, fair value is generally expressed as the weighted average of the exporter's home market prices or prices to third countries during the period of investigation. In some cases it is the "constructed value" --a derived figure used if there are few home-market or third-country sales of the product in question, or if the number of such sales made at prices above the cost of production is so few that they provide an inadequate basis for comparison. See also dumping margin.

An option value derived from a mathematical option valuation model.

When an option or warrant is priced at the same level as an outcome of an options pricing model.

The amount that could reasonably be expected to be received for an investment in a current sale between a willing buyer and a willing seller. For publicly traded securities, this is the price at which the security is currently being traded on a national market. For investment instruments that are not publicly traded, this is the appraised value adjusted for cash flows to or from the investment.

The theoretical price at which the S&P Future should trade above the cash index.

Market value of securities, property, plant and equipment etc., which can be calculated according to various models.

the proportionate amount of the total entity value without regard to discounts to reflect a minority position (for lack of control or lack of marketability attributable to the minority position).

in the pricing of financial instruments, the value determined by mathematical modeling of the instruments value. Also used as a defined term in U.S. accounting standards as fair value accounting and 'fair value hedges' as in FASB Statement FAS 133. A Fair Value Hedge is a hedge of the exposure to changes in the fair value of a recognized asset or liability, or of an unrecognized firm commitment, which are attributable to a particular risk.

The expected value of the option payoff. In general, this will be less than the premium.

Amount at which assets are traded fairly between business partners. Fair value is often identical to market price.

Usually refers to the value of an option premium according to a mathematical model.

The expected value of an option at payout

A mathematically calculated value for an option or future that accommodates a trader's parameters for interest rates, dividends etc. Different tax regimes or interest rate environments may give rise to different fair values for different investors in the same instrument.

For benefit-responsive stable value investments, "fair value" is generally determined to be contract (or book) value.

The price at which a single unit of a security would trade between parties that don't have interests in the issue. Fair value does not take into account various premiums or discounts that would be assessed for large or illiquid positions.

In futures trading, the discounted value of the exercise price. In options trading, the price predicted by an options model such as Black-Scholes. If derivatives diverge significantly from fair value, an arbitrage opportunity is created.

Fair value assessments are the property assessments determined in accordance with the Cities Act and the Saskatchewan Assessment Manual adopted by the Saskatchewan Assessment Management Agency. Currently, the fair value of properties is of June 30, 2002.

The objective price or value of an asset item, e.g. an option and the amount which unrelated parties would be prepared to pay for such an asset.

Describes the worth of an options or futures contract. On a daily basis, fair value is published pertaining to the S&P futures. When fair value falls below a predetermined value, traders sell the cash index and buy futures. When fair value rises above a predetermined value, traders buy the cash index and sell futures.

Is viewed as the indifference point from a modeling perspective as to whether to buy or sell an instrument or market. If the market price were higher than fair value it would suggest selling the security. If the security was trading at less than fair value it would suggest buying it. When coupled with related derivative instruments, the approach becomes an arbitrage one.

The amount at which an asset could be exchanged in a current transaction between willing parties. If a market price is available, the fair value is equal to the market value. If a quoted market price is not available, the estimate of fair value should be based on the best information available in the circumstances.

This is the theoretical price at which a futures contract should trade.

The theoretical price at which a futures contract would be expected to trade.

Price at which theoretical future contracts should be trading above or below the leading future contract. Fair values for stock indices are determined by differentials in interest rates and dividend payments

In antidumping investigations, it is the price at which items exported should have been sold so as to be considered offered for export sale at fair market value. Generally determined by comparison to sales price of the same goods in the domestic market or a third country market. Goods sold at fair value are not dumped.

An estimate of the proceeds from transfer of an asset to a buyer on market terms. The fair value of a liability is an estimate of the set-off value of the liability on market terms. See also amortised cost.

The weighted average of a product's domestic market prices.

The price of a firm's share that should prevail according the fundamentals is interpreted through financial analysis. This does not mean that the value is necessarily achievable in the market place, since other factors such as sentiment, fund flows and technical support and resistance levels come into play when determining the price of any asset that is traded on a public market.

The fair value in efficient markets is the price determined by considering all relevant price-determining factors, used as the basis for transactions which could be concluded by independent, expert business partners potentially willing to enter into a contractual agreement.

In determining the company's Rate Base by this method you can either (1) estimate the cost to rebuild, (2) inflation adjust or trend Original Cost, or (3) estimate the market value. See ORIGINAL COST.

Normally, a term used to describe the worth of an option or futures contract as determined by a mathematical model. Also sometimes used to indicate intrinsic value. See also Intrinsic Value and Model.

A value term commonly used in connection with minority shareholder dissent and oppression remedy rights, describing the basis upon which the acquisition price for the minority shares is to be determined.

The theoretical price at which a futures or options contract should trade.

The value of the carrier's property; the basis of calculation has included original cost minus depreciation, replacement cost, and market value.

Theoretical value.

1. The estimated value of all assets and liabilities of an acquired company used to consolidate the financial statements of both companies. 2. In the futures market, fair value is the equilibrium price for a futures contract. This is equal to the spot price after taking into account compounded interest (and dividends lost because the investor owns the futures contract rather than the physical stocks) over a certain period of time.

(USA) In dumping evaluations, it is the price at which the items being reviewed should have been sold in the home market in order to be considered as goods offered for export in the usual course of trade at fair market value and not guilty of being dumped.

Refer to: Dumping

The amount at which an asset (or liability) could be bought (or incurred) or sold (or settled) in a current transaction between willing parties, that is, other than in a forced or liquidation sale.

The amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.