The value of stock that is not publicly traded may be determined by considering
A)the nature and history of the business.
B)earning capacity.
C)dividend-paying capacity.
D)all of the above

Question

Quizplus · Accepted Answer

The value of stock that is not publicly traded may be determined by considering the nature and history of the business, earning capacity, and dividend-paying capacity. All of these factors are important in assessing the value of a company's stock, especially if it is not publicly traded and there is no market for the shares. The history and nature of the business can give insight into its future prospects and the potential for growth, while the earning and dividend-paying capacity can provide an estimate of the company's ability to generate profits and distribute them to its shareholders. Thus, all three factors are important in determining the value of non-publicly traded stock.

The Value of Stock That Is Not Publicly Traded May