Fair Market Value (FMV) is the price that a property or asset would sell for on the open market, where both the buyer and seller are willing and informed. It reflects the value agreed upon by both parties, without any pressure to buy or sell. FMV is commonly used in real estate, business valuations, and tax assessments. Determining FMV involves considering various factors, such as recent sales of similar properties, current market conditions, and the specific characteristics of the asset. It is important for transactions involving real estate, stocks, or businesses to ensure fair pricing and compliance with regulations.