October 17, 2018

Market Value

3. Market Value:


Market Value = Market Price of the share

This is the market price of a share. The market value of the entire equity of a company is termed as market capitalization and is computed as market price per share multiplied by total number of outstanding shares. The market value of a share depends upon host of factors like the expected performance of the company, market sentiments and liquidity, among others.

Example:

Market price of XYZ is trading at Rs. 100 a share.

How to Analyse:

Market price of a stock is a relative measure & it changes every 5 seconds depending on how liquid a stock (number of people trading). It’s updated on most websites on a daily basis, while on most Investing websites you can even see them updating live during market hours.

 

                         

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