What is a stock's book value?
A) The current price of a share of stock in the stock market
B) The average price of one share of stock over the past year
C) The face value of a share of stock, set by the issuing company's board of directors
D) The value expressed as total stockholders' equity divided by the total number of shares of stock issued
E) The value expressed by the number of stock shares issued by the board of directors

Question

Quizplus · Accepted Answer

A stock's book value is defined as the value of a company's assets minus its liabilities and is expressed as total stockholders' equity divided by the total number of shares of stock issued. It represents the theoretical amount of money that would be left over if a company were to liquidate all of its assets and pay off all of its liabilities. Therefore, option D is the correct choice.

What Is a Stock's Book Value