Readily Ascertainable Fair Market Value

Readily Ascertainable Fair Market Value means:
an amount that applies to an option (e.g., a warrant) that is traded on an established stock exchange. If a stock option does not have a readily ascertainable fair market value, an employee does not recognize income at the grant date of the nonqualified stock option, but ordinary income is reported on the spread at the exercise date. Former Tax Regulation (check if this Reg. is current here) §1.421-6(d).

See also other Tax Terms and Definitions in U.S.A.

nonqualified stock option.