For the share, not the book value

favosok627@opre

Al value and market value? The nominal value is the value written on the share instrument or share voucher at the time of issuance and stipulated in the articles of incorporation. The market value is the value of the share when trading in the financial market, and it may be more or less than the nominal value. Therefore, the nominal value does not represent the real valuation. , the real value emerges from the expected return it generates upon ownership. What is the difference between book value and market value?


The market value reflects the value of the business, taking into account the market pThe market value contributes to providing an accurate indicator of whether the company’s shares are overvalued or undervalued, based on phone number database the difference between the market value and the fair value, as investors and traders tend to buy or sell shares according to the results they have previously reached. Which allows them to make the most of the separation between the two prices when the market is fair. 2- Disadvantages of market value When determining the market value of a stock, it is important to have a historical database used to compare the market value between one stock and another.

   


The value of the company is not taken as a measure to achieve this. Rather, there must be a sound standard on the basis of which market values ​​are measured, and the market value is an indicator of what... The person is willing to pay as compensation, so the intrinsic value is ignored. You may also be interested in reading about the explanation of the rate of return on investment Example of markearticipants. The book value reflects the value of the business according to the financial statements or books, not the participants.