Question

stock is valued in the books of accounts based on

Answer 1

Answer:

The correct answer to this question is the difference between a company's total assets and total liabilities.

Explanation:

Given - Stock is valued in the books.

To Find - stock is valued in the books of accounts based on

The amount that shareholders would get if a firm was liquidated and all of its debts were settled is known as the book value of a stock. The difference between a company's total assets and its liabilities is hence its book value.

The price of a company's shares in the market once it goes public and its shares start trading on a stock exchange is determined by supply and demand. If there is substantial demand for its shares due to advantageous factors, the price will increase.

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