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The difference between book value and market value is fundamental in finance. Book value represents a company's assets minus its liabilities, as recorded on its balance sheet. It reflects the company's net worth based on historical costs. Market value, on the other hand, is the current value at which an asset or company can be bought or sold in the market. It is determined by supply and demand dynamics and investor perceptions https://literaturereviewwritingservice.com/ For those diving deep into research, understanding such financial concepts is crucial. If you need assistance with literature reviews on related topics, check out for expert help.
In terms of an asset, Book value is the actual cost paid for acquiring an asset whereas market value is the current rate which can be realized if the asset is put on sale.
E.g. If an asset was bought for $10000 a few years back, it is the book value of an asset. If it can be sold in the market today at a rate of $6000, then it is the market value.
