What is difference between fair value and market value?

Contemporary Auditing
11th Edition
ISBN:9781337650380
Author:KNAPP
Publisher:KNAPP
Chapter2: Audits Of High-risk Accounts
Section2.11: Overstock.com, Inc.
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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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