Fair market value is the price at which an asset could be sold on the open market if certain conditions are met.
The conditions are that the parties involved are aware of all the facts, act in their own interests, free from any pressure to buy or sell, and have enough time to make a decision.
Fair market value differs from market value and assessed value.
Tax settings and the real estate market are two areas where fair market value is commonly used.
Insurance companies use fair market value when determining payouts for certain claims.
Performance Based Management (ABM) is a means of analyzing a company’s profitability by looking at every aspect of its business to determine its strengths and weaknesses.
A ballpark figure is a rough estimate of what something might mean in numerical terms when a more precise number is estimated, such as the cost of a product.
The binomial distribution is a probability distribution that generalizes the probability that a value will take on one of two independent values given a set of parameters or assumptions.
Share capital is the number of ordinary and preferred shares that the company has the right to issue and which are accounted for on the balance sheet as part of share capital.
The Central Limit Theorem (CLT) states that the distribution of sample means approaches a normal distribution as the sample size increases, regardless of the distribution of the population.