If there is no principal market, the price in the most advantageous market is used.

Question

Quizplus · Accepted Answer

When there is no principal market for an asset or liability, the most advantageous market is used to determine its fair value. This market is the one that maximizes the amount that would be received for the asset or minimizes the amount that would be paid to transfer the liability, after considering transaction costs and transport costs.

If There Is No Principal Market, the Price in the Most