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Posted on: 1/26/2026
From the NASPP Blog: Back to Basics: Fair Value and Fair Market Value Explained
Terms like fair value (FV) and fair market value (FMV) are often used interchangeably in valuation spaces, but there are important distinctions in their definitions that can impact factors like expense recognition, tax compliance, and employee expectations. In “Back to Basics: Fair Value and Fair Market Value Explained” published on the NASPP Blog, Josh Schaeffer and James Milne of Equity Methods break down the definitions of fair value (FV) and fair market value (FMV) and explain why those differences matter when running a stock plan.
