If the market value of a common share is greater than its book value,the common share is probably overpriced.

Question

Quizplus · Accepted Answer

The market value of a common share being greater than its book value does not necessarily mean the share is overpriced. Market value can exceed book value for reasons such as the company's future growth prospects, profitability, and other factors that investors may consider valuable.

If the Market Value of a Common Share Is Greater