When the value of a venture increases, but the value of its shares does not achieve a corresponding increase, this discrepancy is known as
A) dilution.
B) valuation divergence.
C) factoring.
D) liquidation.
E) due diligence.

Question

Quizplus · Accepted Answer

Valuation divergence occurs when the intrinsic value of a venture increases, but the market value of its shares does not reflect this increase.

When the Value of a Venture Increases, but the Value