If the market value of a stock falls to approximately the book value,investor interest in buying the stock generally increases.

Question

Quizplus · Accepted Answer

This statement is generally true. When a stock's market value falls close to its book value, investors may see it as undervalued and a potential bargain, leading to increased interest in buying the stock. However, this is not always the case, as investors may also consider factors such as the company's financial health and future prospects before making a decision to buy or sell.

If the Market Value of a Stock Falls to Approximately