BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The investment market
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The government
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Shareholders
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The respective companies
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Detailed explanation-1: -Market value of the shares are decided by the investment market. Market value is the price an asset would fetch in the marketplace.
Detailed explanation-2: -Market value can give an indication of whether a company’s shares are over-or undervalued, depending on the difference between market value and the fair value. Traders and investors will often buy and sell stocks based on their findings.
Detailed explanation-3: -Market value is determined by the valuations or multiples accorded by investors to companies, such as price-to-sales, price-to-earnings, enterprise value-to-EBITDA, and so on. The higher the valuations, the greater the market value.
Detailed explanation-4: -Market value defines how much an asset (like a company) is worth on the public market. In the stock market, market value refers to the current price of a company and reflects investors’ sense of that company’s prospects. It’s dynamic, meaning that it shifts constantly as the market adjusts.
Detailed explanation-5: -Stock prices are largely determined by the forces of demand and supply. Demand is the amount of shares that people want to purchase while supply is the amount of shares that people want to sell.