Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

In today's world a company's value is dependent on the value of its own shares in stock market. Do you agree?

user-image
Question added by Deleted user
Date Posted: 2015/07/11
Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

Market value is also commonly used to refer to the market capitalization of a publicly-traded company, and is obtained by multiplying the number of its outstanding shares by the current share price. Market value is easiest to determine for exchange-traded instruments such as stocks and futures, since their market prices are widely disseminated and easily available, but is a little more challenging to ascertain for over-the-counter instruments like fixed income securities. However, the greatest difficulty in determining market value lies in estimating the value of illiquid assets like real estate and businesses, which may necessitate the use of real estate appraisers and business valuation experts respectively.

Duncan Robertson
by Duncan Robertson , Strategy Consultant , Duncan Robertson Consultancy

In normal circumstances stock market valuation IS the value of the company. A thing is only worth as much a somebody is willing to pay for it.

IRPHAN GHANI
by IRPHAN GHANI , Senior Management , A

Unfortunately yes but mostly it does not reflect the true values as it has large scope for manipulation.

Montaser Makhlouf
by Montaser Makhlouf , A teacher of English , The ministry of education

I don't. The stock market is changeable and is ruled by alot of factors and the political conditions. So the company may come up or collapse according to the mood of the stock market. 

 

More Questions Like This