Market Value of Shares
In the stock market, market price per share does not correspond to the equity per share calculated in the accounting statements. Stock valuations, which are often much higher, are based on other considerations related to the business' operating cash flow, profits and future prospects; some factors are derived from the accounting statements.
Read more about this topic: Equity (finance)
Famous quotes containing the words market and/or shares:
“Today the tyrant rules not by club or fist, but, disguised as a market researcher, he shepherds his flocks in the ways of utility and comfort.”
—Marshall McLuhan (1911–1980)
“It is the sun that shares our works.
The moon shares nothing. It is a sea.”
—Wallace Stevens (1879–1955)