Explain What Is Meant by the Fundamental Value of a Share

question 65

Essay

Explain what is meant by the fundamental value of a share of stock.

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Definitions:

Rational-legal authority

A form of leadership where authority is based on legal legitimacy and bureaucratic procedures, as opposed to traditional or charismatic forms of governance.

State

An institution that maintains a monopoly over the legitimate use of force in a given territory.

Political systems

Refers to the framework of formal legal institutions, processes, and norms through which a society organizes its governance and allocates authority to make and enforce policies.

Socialist systems

Economic and political systems where the means of production, distribution, and exchange are owned or regulated by the community as a whole.