Some investors believe they have found a bargain when a stock's share price is greater than its books value.

Question

Quizplus · Accepted Answer

When a stock's share price is greater than its book value, it indicates that the market has valued the company's assets, earnings potential, and growth prospects at a premium. Therefore, it may not necessarily be a bargain, and investors should conduct further analysis before making any investment decisions.

Some Investors Believe They Have Found a Bargain When a Stock's