MANAGEMENT

BUISENESS MANAGEMENT

FINANCIAL MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The market value of a share is responsible for.
A
The investment market
B
The government
C
Shareholders
D
The respective companies
Explanation: 

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: -The market value represents the value of a company according to the stock market. It is the price an asset would get in the marketplace. In the context of companies, market value is equal to market capitalization. It is a dollar amount computed based on the current market price of the company’s shares.

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.

There is 1 question to complete.