The terminal value of a share of stock:
A) is similar to the maturity value of a bond.
B) refers to the share value at the end of the investor's holding period.
C) is the value received by investors upon liquidation of the firm.
D) is the price for shares traded through a dealers' market.

Question

Quizplus · Accepted Answer

The terminal value of a share of stock refers to the share value at the end of the investor's holding period, which may be influenced by factors such as company performance, industry trends, and overall market conditions. It is not necessarily the same as the maturity value of a bond or the value received upon liquidation of the company, nor is it related to the price for shares traded through a dealers' market.

The Terminal Value of a Share of Stock