Arm's Length Market
An arm's length market is based on the principle that parties should have equal influence in transactions. Furthermore, it removes opportunities for deals derived from personal relationships, which may manipulate the market.
Investment dictionary. Academic. 2012.
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arm’s length — adj. Distant, not intimate; describes a good faith, fair market transaction by parties with relatively equal bargaining power, in which neither one forces the other to accept terms. The Essential Law Dictionary. Sphinx Publishing, An imprint of… … Law dictionary
Arm's length principle — The arm s length principle (ALP) is the condition or the fact that the parties to a transaction are independent and on an equal footing. Such a transaction is known as an arm s length transaction . It is used specifically in contract law to… … Wikipedia
Arm's Length Transaction — A transaction in which the buyers and sellers of a product act independently and have no relationship to each other. The concept of an arm s length transaction is to ensure that both parties in the deal are acting in their own self interest and… … Investment dictionary
arm's length — 1) Denoting a transaction entered into by unrelated parties, each acting in their own best interests in paying or charging prices based on fair market values. In the preparation of financial statements it is normally assumed that all transactions … Accounting dictionary
arm’s length — /ɑ:mz leŋθ/ adjective ♦ arm’s length transaction a transaction which is carried out by two parties with no connection between them (resulting in a fair market value for the item sold) ♦ to deal with someone at arm’s length to deal as if there… … Dictionary of banking and finance
arm's length — 1) Denoting a transaction in which the parties to the transaction are or behave as if they are unrelated parties. For example, a transaction between two subsidiaries of the same parent organization could only be said to be at arm s length if it… … Big dictionary of business and management
arm’s length transaction — A transaction at *fair market value between unrelated parties, or a transaction made as if it were between unrelated parties for example, All the sales between the corporation’s overseas branches are made at arm’s length … Auditor's dictionary
arm's length transaction — Said of a transaction negotiated by unrelated parties, each acting in his or her own self interest; the basis for a fair market value determination. A transaction in good faith in the ordinary course of business by parties with independent… … Black's law dictionary
market internalization advantages — Conditions that allow a corporation to exploit the failure of an arm s length market to deliver goods or services efficiently. Bloomberg Financial Dictionary … Financial and business terms
Market value — For values of entire markets, see Market size. Market value is the price at which an asset would trade in a competitive auction setting. Market value is often used interchangeably with open market value, fair value or fair market value, although… … Wikipedia