What is a market participant?
In order for an asset to be measured at fair value and for there to be an orderly transaction, there has to be a buyer and seller that can be considered a market participant. This is basically saying that buyers and sellers need to unbiased and acting in their own best interest.
If your parents offered to buy your house for 20% above market value, do you think that represents an orderly transaction? No, your parents would not be independent and may not be acting in their own best interest. The visual below outlines the definition of a market participant.
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