What is difference between fair value and market value?

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter8: Securities Law Considerations When Obtaining Venture Financing
Section8.7: Sec’s Regulation D: Safe-harbor Exemptions
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  1. What is difference between fair value and market value?

No more than one short paragraph (less than 50 words)

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Fair Value:

It refers to the asset's actual worth and is fundamentally derived. Hence, not determine the factors of market forces.

Market Value:

It is determined solely based on the factors of market forces.

 

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