Definition
FMV is the price at which an asset would trade between a willing buyer and seller in an open market. It reflects the true value of an asset based on current market conditions.
Related Services
Business valuation, tax assessment, and real estate appraisal services use FMV to establish the value of assets for various purposes.
Problem and Application
FMV is essential for asset valuation in transactions, but determining it can be subjective, especially in illiquid markets or for unique assets.
Conclusion
FMV provides an objective basis for asset valuation, but accurate estimation requires market data and expert judgment.
