| Fair
Value |
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The estimated value of all assets and liabilities of an acquired company
used to consolidate the financial statements of both companies.
In the futures market, fair value is the equilibrium price for a futures
contract. This is equal to the spot price after taking into account
compounded interest over a certain period of time.
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The
"fair value" quoted on TV refers to the relationship between
the futures contract on a market index and the actual value of the
index. If the futures are above fair value then traders are betting
the market index will go higher, the opposite is true if futures are
below fair value. |
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