The book values of shares of stock are always equal to their market values.

Question

Quizplus · Accepted Answer

The book value of a share of stock is the value that is listed on a company's balance sheet and is calculated by subtracting the total liabilities from the total assets of the company, then dividing the result by the number of outstanding shares of stock. The market value of a share of stock, on the other hand, is the value that investors are willing to pay for the stock, and it is determined by supply and demand in the stock market. Therefore, the book value and market value of a stock may be different.

The Book Values of Shares of Stock Are Always Equal