Ask Question
BusinessBusiness
18 July, 08:37

A stock's market price would equal its intrinsic value if all investors had all the information that is available about the stock. In this case the stock's market price would equal its intrinsic value.

+4
Answers (1)
  1. 18 July, 08:43
    0
    True. A stock's market price would equal it's intrinsic value if all the investors had all the information about the stock.

    Explanation:

    Intrinsic value is different from market value in the sense intrinsic value is derived by subtracting all assets from all liabilities of a company.

    Intrinsic value is equal to market value + / - investor's sentiments

    Market price of a share is usually derived by dividing total market capitalization by no of shares/stock outstanding. It refers to the value at which a company's stock is currently trading in the stock market.

    As efficient market theory holds, investor decisions are affected by the information about a stock which gets circulated. This wipes out any arbitrage possibilities.

    A stock's market price would equal it's intrinsic value if all investors had all the information that is available about the stock.

    Thus, the given statement is true.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A stock's market price would equal its intrinsic value if all investors had all the information that is available about the stock. In this ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Helmsman Products sells a special type of navigation equipment for $ 1 comma 400. Variable costs are $ 900 per unit.
Answers (1)
The Mixing Department of Healthy FoodsHealthy Foods had 65 comma 00065,000 equivalent units of materials for OctoberOctober.
Answers (1)
At year end, Rebos Company's financial statements showed sales of $820 million, net income of $425 million, total assets of $750 million, total liabilities (including preferred stock) of $735 million, and 1.
Answers (1)
Which of the following is true of good salespeople? Question 1 options: They know how to oversell their product so the customer can't say no. They have tenacity but know when to walk away and move on to the next sales prospect.
Answers (2)
5. Country P has an unemployment rate of. 10, and there are 100,000 unemployed people living in the country. What is the total workforce in Country P?
Answers (1)
New Questions in Business
Compute the average days in inventory ratio using the following information: Net sales is $200,000 for the year, cost of goods sold are $80,000, last year's total assets were $900,000, and this year's total assets are $1,100,000.
Answers (1)
You are the project manager of the BHY Project. Your project customer has demanded that the project becompleted by December 1. December 1 is an example of which one of the following? A. ConstraintB. AssumptionC. Project boundaryD.
Answers (1)
Harrison Recyclers Company uses the indirect method to prepare its statement of cash flows. Refer to the following information for 2017: 1. Retained Earnings, beginning balance, $142,000 2. Retained Earnings, ending balance, $122.000 3.
Answers (1)
Assume that total costs assigned to the setup activity cost pool in March are $120,000 and 100 setups were completed in March. Further, assume that during March machines were setup 20 times to make product X5.
Answers (1)
The accounting cycle starts with a. closing out the periodic accounts. b. recording the transaction based on the information in a source document. c. preparing the financial statements. d. preparing the adjusting entries.
Answers (1)
Home » Business » A stock's market price would equal its intrinsic value if all investors had all the information that is available about the stock. In this case the stock's market price would equal its intrinsic value.
Sign Up Forgot Password?