Book value of a company is equal to net worth of a company, which is not always equal to the market value of the company.

Question

Quizplus · Accepted Answer

The book value of a company represents the net worth or shareholder equity of a company, which is calculated by subtracting total liabilities from total assets. The market value of a company, on the other hand, is the price at which the company's stock is traded in the stock market and is determined by supply and demand factors. The market value can be higher or lower than the book value depending on market expectations, investor sentiment and other factors.

Book Value of a Company Is Equal to Net Worth