Market value per share is:

a. The price at which a stock is bought and sold.

b. A contractual commitment by an investor to purchase unissued shares of stock.

c. Stock not assigned a value per share.

d. The right of common stockholders to protect their proportionate interests in a corporation by having the first opportunity to purchase additional shares of common stock issued by the corporation.

Question

Business

Zack

13 November, 11:39

Market value per share is:

a. The price at which a stock is bought and sold.

b. A contractual commitment by an investor to purchase unissued shares of stock.

c. Stock not assigned a value per share.

d. The right of common stockholders to protect their proportionate interests in a corporation by having the first opportunity to purchase additional shares of common stock issued by the corporation.

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Answers (1)

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Elianna Bernard · Answer 1

The answer is a. Market value per share is the price at which a stock is bought and sold.

Explanation:

For shares that are listed in the stock exchange, the market value per share is the price of share at which share is currently traded. In other words, this is the fair value of the share and at this price, share can be readily sold or bought.

(b) is not correct because it describes the commitment (usually made by an investment bank) to purchase newly issued shares at predetermined price when those shares are not purchased by other investors in the market.

(c) describes a type of stock rather than the definition of market value per share.

(d) describes Preemptive right rather than the definition of market value per share.