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market value


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1. (market capitalization) The value of a company obtained by multiplying the number of its issued ordinary shares by their market price. This may differ widely from the book value of the company. 2. (open market value) The value of an asset if it were to be sold on the open market at its current market price. When land is involved it may be necessary to distinguish between the market value in its present use and that in some alternative use; for example, a factory site may have a market value as a factory site, and be so valued in the company’s accounts, which may be less than its market value as building land. See fair value.

1. (market capitalization) The value of a company obtained by multiplying the number of its issued ordinary shares by their market price. This may differ widely from the book value of the company. 2. (open market value) The value of an asset if it were to be sold on the open market at its current market price. When land is involved it may be necessary to distinguish between the market value in its present use and that in some alternative use; for example, a factory site may have a market value as a factory site, and be so valued in the company’s accounts, which may be less than its market value as building land. See fair value.

Subjects: Financial Institutions and Services — Accounting.


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