Explain How Shares of Stock Traded on a Stock Exchange

question 85

Essay

Explain how shares of stock traded on a stock exchange are valued. What is the blockage rule?

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Definitions:

Owner's Equity

The residual interest in the assets of a business after deducting its liabilities, representing the owner's claim against the company's assets.

Total Assets

The sum of all assets owned by a company, including current, non-current, tangible, and intangible assets, reflected on the balance sheet.

Period Of Time

A period of time is a specified duration or a length of time during which events, processes, or conditions occur or continue.

Accounting Equation

The fundamental equation of double-entry bookkeeping: Assets = Liabilities + Shareholder's Equity.