One would expect the book value of a share of stock to be about the same as the stock's market value.

Question

Quizplus · Accepted Answer

The book value of a share of stock represents the value of a company's assets minus its liabilities, divided by the number of outstanding shares. Market value, on the other hand, is determined by supply and demand in the stock market. Therefore, the two values can be quite different, as market value takes into account factors such as the company's growth potential and earnings.

One Would Expect the Book Value of a Share of Stock