Book Value

A Company’s “Book Value” is the amount of money it would be worth if you added up all the money it has and the estimated value if you sold all of the company’s assets (things it owns that have value).

The “Market Price” in contrast is the amount of money that the stock market thinks a company is worth. ┬áThis is the number of shares times the market value (amount of money one share is currently trading for on the stock market).

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