What is the difference between Market Price of Shares & Fair Value of Shares?????
Ankit Agarwal (Article) (204 Points)
20 October 2011What is the difference between Market Price of Shares & Fair Value of Shares?????
Rahul Gupta
(Chartered Accountant)
(644 Points)
Replied 21 October 2011
Although i think both has the same meaning but you can further distinguish between these two that the Market Price of the Share refers to the current price of share which is subject to change daily on the basis of market trading. It generally refers the closing rate of the share.
Whereas the Fair Value of shares may be referred to the Average market price of the share on the basis of Quarterly, etc. which is not subject to change very frequently and can be served as the basis for many calculations required constant factor of price.
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