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Fair market value sounds pretty -- well, fair -- doesn't it? Unfortunately, the ideal buyer and seller, as defined in the concept of fair market value, don't necessarily coincide with actual buyers and sellers. Fair market value assumes a hypothetical and idealized transaction, but actual buyers and sellers are real people with unpredictable motivations. This can cause conflict between a business's fair market value and its transaction value.
June 25, 2004 at 12:00 AM
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The original version of this story was published on Law.Com
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