For a publicly traded firm, market value can be calculated or defined as the:
A)price of the stock times the number of shares traded.
B)increase in price of the stock times the number of shares traded.
C)face value of the stock times the number of shares traded.
D)sum of the number of shares traded and the price of the stocks.
E)face value of the stock times the increase in price of the stock for a particular period.

Question

Quizplus · Accepted Answer

The market value of a publicly traded firm is determined by multiplying the current stock price by the total number of outstanding shares. This reflects the company's total value as perceived by the stock market.

For a Publicly Traded Firm, Market Value Can Be Calculated