Fair Value vs. Market Value
Fair Value Market Value Fair value refers to the actual worth of an asset, which is derived fundamentally and is not determined by the factors of any market forces. Market value is solely determined by the factors of the demand and supply, and it is the value that is not determined by the fundamental of an asset. Fair value is most commonly used in the market instead of any other valuation method. As in the fair value, there is an accuracy in the valuation of the asset and is a true measure of the technique. Market value is not the most common [...]