GO
Loading...

Fair Value: CNBC Explains

Thursday, 20 Oct 2011 | 12:00 PM ET

Fair value is a tool used by investors to understand the relationship between the value of futures contracts and the current price of a stock. The term is used in pre-market hours to help forecast the direction of the market. Any differences are used by sophisticated investors to create arbitrage opportunities. Salman Khan of the Khan Academy explains.