Which of the following is correct?
The par value of stock is generally the best indicator of the real value of a share of stock.
The market value of a share of stock is determined almost solely by objective, financial considerations.
The book value of a share of stock is calculated by dividing stockholders' equity by the current market price of the stock.
A company's market capitalization is determined by multiplying the number of a company's outstanding shares times the market value of each share.
By law, subjective factors like rumours and stockbroker recommendations are not allowed to influence the market price of a share of stock.
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