fair market value

noun

: a price at which buyers and sellers with a reasonable knowledge of pertinent facts and not acting under any compulsion are willing to do business

Examples of fair market value in a Sentence

Recent Examples on the Web
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The difference between the stock’s fair market value at exercise and the price the individual pays is treated as ordinary income. Virginia La Torre Jeker, J.d., Forbes.com, 30 Mar. 2025 The company must complete a business combination with an aggregate fair market value of at least 80% of the net assets held in the trust account. Quartz Intelligence Newsroom, Quartz, 27 Mar. 2025 The fair market value of the asset on the date of the gift qualifies for a charitable deduction for someone who itemizes expenses on Form 1040. Bob Carlson, Forbes, 20 Mar. 2025 The review would rely on fair market value analysis, with the idea that if an athlete is set to be compensated for the commercial use of their identity, the amount of pay shouldn’t far exceed the real-world value of that identity. Michael McCann, Sportico.com, 28 Feb. 2025 See All Example Sentences for fair market value

Word History

First Known Use

1891, in the meaning defined above

Time Traveler
The first known use of fair market value was in 1891

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Cite this Entry

“Fair market value.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/fair%20market%20value. Accessed 4 Apr. 2025.

Legal Definition

fair market value

noun
: a price at which buyers and sellers both having reasonable knowledge of the property and being under no compulsion are willing to do business

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