Replies to post #73658 on Biotech Values

[grandpatb]

well said. thanks.

[oldberkeley]

" Note that the author uses "fair value" and "market value" interchangeably..."

Grandpatb & Medchal-

Actually, the loan,appraisal and real estate industry uses as a standard the term "Fair Market Value": in an arm's length transaction what a willing buyer will give a willing seller at a given point in time. Many professionals shorten it to either "fair value" or "market value" and it's understood that the two are synonymous. However, I can see how this might be confusing! :-)

[mouton29]

OT - bank loans <<. Bank loans are not "marketable" in the commonly accepted use of that word, so how is one to determine their "market value"? >>

Many bank loans in fact do trade reasonably actively and you can get quotes or at least historic prices on a Bloomberg terminal or via other sources. In fact -- and this is way off topic -- this has created a tax problem because if a loan is materially modified and it treated as "publicly traded" and has been trading below face, the borrower has cancellation of indebtedness income. The recent stimulus bill has a temporary fix for this problem -- my point is, it is enough of a problem to require legislation.