Fair Market Value is crucial for ensuring transparency and fairness in financial transactions, investment decisions, and tax assessments. It is widely used in estate planning, mergers and acquisitions, and financial reporting. FMV helps investors determine whether an asset is overvalued or undervalued relative to its market peers. Governments and regulatory agencies use FMV to calculate property taxes, capital gains taxes, and other levies. Understanding FMV is essential for individuals and businesses engaging in asset transfers, investments, and financial disclosures.