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Fair Value: CNBC Explains

Thu 20 Oct 11 | 12:00 PM ET
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Fair Value: CNBC Explains

Thu 20 Oct 11 | 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.
 
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