Market Value = The value of a company that an investor/purchaser is willing to pay on the open market (assuming proper marketing of the company for sale.
Book Value = Basically this is the assets of a company minus the liabilities of a company (i.e. taken from the companies annual and quarterly reports). This is the value that your company is worth for tax purposes, wall street purposes, etc. - Answer by an MBA (Master of Business Administration)
2006-10-06 13:24:16
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answer #1
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answered by AirDevil 4
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If we are talking about a listed stock the answer is:
Market value of a share is the current price of the stock on the stock market.
This price reflects the collective opinion of investors interested in this company about the company's future.
The Book value of a share is calculated by subtracting the liabilities of the company from the assets of the company and dividing the balance by the number of shares of the company outstanding.
2006-10-06 14:28:01
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answer #2
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answered by Mike Sierra 1
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Market Value is what people think a stock (or whatever) is worth. Market value of a stock is its last quoted price on the stock market. Book Value is an accounting value. It is really (Assets - Liabilities) divided by number of outstanding shares.
IF MV< BV, the stock is generally considered undervalued and so many might consider buying it. A caveat: maybe the stock is undervalued because it's going to the dogs.
2006-10-06 15:10:42
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answer #3
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answered by bluecloud23 2
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To keep it simple M.V is the price you can reasonably expect to get for an asset if you try sell it
B.V. is the value of an asset in the business once you have depreciated. it You usually depreciate assets by a set percentage, say 20% each year
2006-10-06 20:05:16
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answer #4
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answered by analyst 3
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if your talking about personal stock, market value is what the purchaser will pay, book value is what you own.
2006-10-06 13:31:31
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answer #5
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answered by glasgow girl 6
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Retail and wholesale.
2006-10-06 13:23:13
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answer #6
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answered by infernal_seamonkey 4
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