The market price of a firm's common stock equals the sum of all equity accounts as reported in its balance sheet (common stock + paid-in capital + retained earnings)divided by the number of shares outstanding.

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The market price of a firm's common stock is determined by supply and demand in the market and may not necessarily reflect the sum of all equity accounts in the balance sheet. The market price is generally influenced by a variety of factors such as the company's financial performance, industry trends, and overall market conditions.

The Market Price of a Firm's Common Stock Equals the Sum