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

Name: If the market value of a share of stock is greater than its book value, the stock is probably overpriced.
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Question

Quizplus · Accepted Answer

The market value being greater than the book value does not necessarily mean the stock is overpriced; it could indicate that investors expect future growth or that the company has intangible assets not reflected in the book value.

If the Market Value of a Share of Stock Is